2016 ANNUAL REPORT

SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT CONTENTS

Introduction Future Directions 22 About SuniTAFE 2 Our Vision, Mission and Values 23 Board Chair’s Report 4 Governance 23 CEO’s Report 6 Compliance Statutory Requirements and Statements 28 Our Organisation Year in Review 2016 Financial Report Customers 9 Declaration Statement 45 Education and Training 16 Independent Auditor’s Report 38 Business 18 Consolidated Financial Statements 48 Staff 20 Notes to the Financial Statements 52 Disclosure Index 101 Key to abbreviations 104

The training services referred to in this report are delivered with Victorian and Commonwealth Government funding. CRICOS Provider Code: 01985A RTO Code: 4693

This report may contain the names, images and descriptions of people who have passed away and which may sadden and distress some Aboriginal and Torres Strait Islander people.

Introduction Accountable Officer’s declaration As Chief Executive Officer of the Sunraysia Institute of TAFE, it is my responsibility to implement and maintain a process to ensure this Annual Report is prepared in accordance with the Financial Management Act 1994, the Standing Directions of the Minister for Finance 2016, the instructions made by the Department of Treasury and Finance Deputy Secretary under delegation of the Minister for Finance, applicable Australian Accounting Standards and Financial Reporting Directions.

In accordance with the above requirements, I am pleased to present the Sunraysia Institute of TAFE Annual Report for the year ending 31 December 2016.

Geoff Dea Chief Executive Officer Sunraysia Institute of TAFE 28/02/2017

1 ABOUT SUNITAFE

Sunraysia Institute of TAFE (SuniTAFE) is horticultural training. Together these creates difficulty in access to high quality one of the largest providers of vocational facilities provide vocational education education, health and other services, education and training in north-west and training for the people of north-west particularly for those in isolated small Victoria. The Institute exists to provide Victoria and beyond. towns with declining populations. the people of north-west Victoria with technical and further education programs Our region Increasingly the region’s young people and services responsive to the needs Loddon Mallee North is a vast geographic are seeking education and employment of industry, students and the general area approximately 45,000 square in metropolitan centres, compounding community. kilometres in size, which is about 17% of the population’s older than average Victoria’s total area. Loddon Mallee North age profile. A small TAFE with a large reach, the enjoys a warm climate, an agriculture Institute was established in 1980 as a based economy and almost a thousand The region is a major food producer, result of the dream of local educators who kilometres of the Murray River. Features with grain, fruit and wine grapes being saw the introduction of post-secondary which provide the region with an envious the predominant industry outputs of the education to the district as being integral lifestyle. region. Growth in non-food industries is to the needs of the growing community however increasing, with mineral sands and regional industry. Over 134,000 people live in the region and emerging as a significant industry and the population is projected to increase renewable energy gaining importance. Inception 13% by the year 2031. The highest growth The region is positioning itself to be The Sunraysia College of TAFE, as it is projected for the 65+ age group. This the centre of Australia’s solar industry was known then, was the first purpose- aging population will require additional through facilities near Mildura, Swan Hill designed and built TAFE College in Victoria. skilled health workers to meet the and Kerang. The College was designed not only to challenge of population increase. The provide a quality teaching program that region has a strong Indigenous heritage, Training delivery would meet the needs of the community a large Aboriginal population, and new These environmental factors have largely and industry but also to provide training skilled migrants are an ever growing driven the development of SuniTAFE’s access to those living in remote regional demographic in the region. Rates of training delivery. Highest delivery occurs areas of north-west Victoria. Removing international and humanitarian migration in the areas of: Community Services educational obstacles for regional and into the region have increased in recent and Health; Automotive; Primary and rural students was a significant driver for years, stimulated by the Australian Forest; and Adult, Community and the initial establishment of the Institute. Government’s regional settlement Further Education. These areas currently programs and the Victorian Government’s account for over half of overall delivery at SuniTAFE today is a vibrant institute with Regional Migration Incentive Fund. the Institute. The institute’s community two main campuses located at Mildura and services and health training is providing Swan Hill and smaller rural campuses at The Loddon Mallee North region has a skilled workers to meet labour shortages Robinvale and Ouyen. A fully operational disproportionate number of communities in aged care, disability services, early training farm is located at Cardross and groups who experience disadvantage. childhood development, nursing, allied near Mildura which provides hands-on The region’s size and remote location health and community services.

2 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

BOARD CHAIR’S REPORT

Our adult community and further education training provides students with training in areas such as language support, work education and general education, enabling students to further their employment opportunities and community engagement.

Traditional areas of delivery at the Institute have reflected the industry base of the region. These were predominately agriculture, horticulture, building, construction and associated trades, light and heavy automotive, community health, welfare, business and retail and hospitality services. While we still deliver in the traditional areas, there has been an increased focus on delivery in areas of regional skills shortage - Health Care and Social Assistance, Trades, and Agriculture.

More often qualifications are designed around providing students with pathways into further study. The Institute is continuing to diversify the way it provides services to the community with delivery occurring via a wide variety of modes including on-campus, off-campus, full and part-time, online, workplace based and skills recognition.

SuniTAFE received 5,668 enrolments in 2016. In delivering important vocational skills to the community and providing local businesses and industry with a skilled workforce, SuniTAFE plays a key role in supporting the region’s economy.

3 BOARD CHAIR’S REPORT

The vocational education and training environment in Victoria continued to evolve in 2016, with preparations towards the implementation of the Skills First agenda from January 2017 and the implementation of a new TAFE governance framework from July 2016.

During the year, the Board oversaw the progression of the capital building projects announced as part of the TAFE Structural Adjustment Fund package through to completion. SuniTAFE welcomed former Minister for Training and Skills, the Honourable Steve Herbert in early 2016 to officially open the Health training facilities located at the Mildura campus and the Learning Commons area (including two (2) new trades’ classrooms and health facilities) located at the Swan Hill campus.

The final stage of the SuniTAFE Redevelopment Project saw the completion of Mildura campus front entrance and the Dulka Yuppata Indigenous Training Centre in September 2016 when the former Minister attended to open these facilities.

The opening of the Skills and Job Centre located off campus, in Mildura City Central was also a milestone. The Centre liaises directly with local employers and provides training and advice to prospective students, apprentices, trainees and unemployed or transitioning workers and works closely with industry to assist employers to identify their training needs.

In mid-2016 we farewelled the CEO, Win Scott after ten years at the helm. Win oversaw and managed significant change within the institute and within the sector; her contribution was invaluable and I thank her sincerely. In June, we welcomed Geoff Dea to the position of CEO, concurrent with some very significant changes to the governance framework for TAFE Boards across the state. In July, the Government introduced new governance arrangements, which saw the expansion of the Board from nine to eleven members. As a result of these changes, we welcomed three new Directors, one elected- staff Director and the return of the CEO to the Board. Directors Owen Russell and Trudi Chant concluded their terms on the Board on 30 June 2016 and Directors Justin Lachal, Mark Liddle, Greg Hutchison and Ross Goonan joined the Board. The newly constituted Board undertook an extensive review of the short, mid and long- term strategic directions for SuniTAFE. From this, they identified four overarching objectives to facilitate SuniTAFE’s vision for the future in delivering education and training, which creates career opportunities.

A key to achieving our objectives is deeper engagement with our communities, and through direct strategies and strategic development of the Board skills in these areas, we have achieved some key partnerships with our industry sectors to promote training and skills and also promote economic development within our rural/regional footprint.

4 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

In 2016 SuniTAFE hosted a number of visiting delegations from overseas commencing with a visit from Korean Delegation of the Korea Overseas Agro. The visit resulted in the Korean Delegation sending eight horticultural students for a period of 28 days visiting many horticultural industry sites and showcasing best practice of the industry in our region. We look forward to working further with them in 2017 to provide longer-term training opportunities.

In late March, a Delegation from the Dali University and the President from India Centurion University attended SuniTAFE undertaking an educational tour of SuniTAFE facilities.

During May 2016, representatives from SuniTAFE visited China and met with leaders and students from various schools to encourage training opportunities at SuniTAFE for Semester two.

In June 2016 a high-level delegation from the Dali Foreign Affairs Office visited Sunraysia. Predominantly, the visit to Sunraysia Institute of TAFE was to acknowledge the ten-year relationship, which is formed as part of the ten-year anniversary between Mildura Rural City Council Sister City and Dali.

It is noted that the Dali prefecture have celebrations every ten years and this decade’s celebrations took place in November 2016 when SuniTAFE representatives were invited to attend the celebrations to attend the 60th Anniversary of the Founding of the Dali Bai Ethnic Group Autonomous Prefecture.

The SuniTAFE representatives also visited educational training colleges, universities and schools Dali, Chongqing, Wuhan and Hong Kong. There was considerable interest in short-term study programs for students, pathways for study to LaTrobe University as well as training programs for teaching staff.

The Board was pleased to host a visit from the newly appointed Minister for Training and Skills, Gayle Tierney, MP in November 2016. The Board welcomed the Minister’s announcement of funding to support the transition to the Skills First Training Package, to be introduced in January 2017. Additional funding was received for the specialised teaching equipment thanks to the Labor Government’s Specialised Teaching Equipment Leonie Burrows Initiative, which included: BOARD CHAIR • Farm cab tractor; • 3D printer/scanner; • Collaborative robot; • Articulated tractor/loader; • Platetronic truck brake tester;

I would like to thank the Board Directors for their commitment to providing sound governance and key strategic advice in their role on the Board, and to supporting the Institute as a whole. In addition to their clear duties of governance and oversight, they have been required to attend extraordinary meetings, planning forums and events with key stakeholders and to comment on key documents and plans – sometimes within a very short time frame.

On behalf of the directors, I also extend my thanks to Win Scott and Geoff Dea and to past and current members of the Executive/Leadership Teams for their very significant contributions, sometimes under difficult circumstances. We look forward to new beginnings and further growth during 2017.

5 CHIEF EXECUTIVE OFFICER’S REPORT

2016 has been a year of significant change for SuniTAFE.

We have farewelled two longstanding leaders in our organisation, both of whom have made enormous contributions to our organisation, and who have also led through an era of significant change in Vocational Education and Training.

Win Scott and Tracey Forbes leave our organisation with our appreciation our best wishes.

Following these departures, the opportunity has arisen for others within the organisation to form part of an expanded Leadership Team and contribute to the next exciting phase in the growth of SuniTAFE.

We have also seen significant changes to our Board, with a number of new faces contributing their expertise and experience to the strategic direction of SuniTAFE. 2016 has also been another year of significant change in the VET Industry itself. We have seen the introduction of the Skills First Funding Model, bringing with it a new role for TAFE in our communities, and a very different way of funding the TAFE’s sector.

In this environment of ongoing change and continuing evolution of of the VET training industry, SuniTAFE has continued to deliver high quality training, outcomes for its region. Examples of SuniTAFE’s achievements in 2016 include:

Awards Giovanni Barbera (Diploma of Hospitality) Winner – Young Citizen of the Year Award, Mildura Rural City Council 2017 Australia Day Awards. Winner – VET/TAFE/ELICOS International Student of the Year Award, 2016 Council of International Students Australia (CISA) .

National Conference Awards Indi Clarke (Certificate IV in Business, Trainee MDAS) Winner – Aboriginal and Torres Strait Islander Student of the Year Award, 2016 Australian Training Awards. Winner - Koorie Student of the Year Award, 2016 Victorian Training Awards. Winner - Young Citizen of the Year Award, Mildura Rural City Council 2016 Australia Day Awards.

2016 also saw SuniTAFE deliver strong training and employment outcomes for students.

The following results are reported in the National Centre for Vocational

6 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Education Research: 81.4% of graduates were employed after training. 86.7% of graduates were employed or enrolled in further study after training. 89% of students satisfied with teaching. 89% satisfied with overall quality of training. 90% recommend training.

During 2016 a number of capital work projects were also completed. These included: • Dulka Yuppata Indigenous Training Centre • Swan Hill Learning Commons • Health Training Facility at Mildura campus • Refurbished front entrance at the Mildura campus.

With the assistance of our Board and Leadership Team, a refresh of the entity’s strategic plan has seen a focus on staff training and the quality of our delivery, ensuring we are able to deliver training that will see the future needs of Industry understood, whilst ensuring students have the skills necessary to compete in an ever-changing workforce.

The four key pillars of our 2017 - 2019 strategic plan are:

01 People and Culture Building a winning culture at SuniTAFE by enabling our people to connect their role to our Strategic Plan and have the opportunity to contribute in the change process. Geoff Dea 02 Education and Training CHIEF EXECUTIVE OFFICER To deliver quality programs and services that meet customer needs, exceed their expectations and deliver relevant employment outcomes and education pathways.

03 Customers To exceed student and customer expectations through understanding and responding to market signals

04 Business To effectively manage resources to ensure SuniTAFE grows enrolments and market share.

Significant work has commenced on the four objectives of this plan.

I would like to thank our Board for their ongoing contribution to SuniTAFE. My thanks would also go to our Leadership Team and staff for their commitment to our organisation, as we continue to work through an ever-changing training environment.

7 8 OUR ORGANISATION

Year in Review The Year in Review section of SuniTAFE’s 2016 Annual Report provides a snapshot of activities and achievements in relation to its strategic and operational objectives. The section highlights are summarised under the headings of: • Customers • Education and Training • Business • Staff

CUSTOMERS

Graduate outcomes The National Centre for Vocational Education Research (NCVER) annual Student Outcomes Survey provides strong evidence of the Institute’s graduate satisfaction. The 2016 survey (of 2015 graduates) showed: • 81.4 % of SuniTAFE graduates were employed after training • 25.7% were enrolled in further study after training • 85.7% of graduates indicated they were satisfied with the overall quality of their training • 90.3% of graduates would recommend SuniTAFE

Each of these indicators of graduate satisfaction and success are above the Victorian TAFE and other Government Providers average satisfaction rates.

9 Indi Clarke

Tracy Mollison

Elliot Grayling SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Edgar Flores Giovanni Barbera

Awards and Achievements Tracy Mollison Edgar Flores Each year SuniTAFE holds graduation (Certificate IV in Horticulture) (Diploma of Hospitality) ceremonies at both the Mildura and Swan Tracy reached the finalist stage in the Edgar reached the finalist stage in the Hill campuses. These events are often the Koorie Student of the Year Award, at International Student of the Year – highlight of our student’s journey with us; the 2016 Victorian Training Awards. As Vocational Education and Training (VET) and are well attended by both Institute a mature aged student, Tracy’s primary Award, 2016 Victorian International staff and the families of our students. goal for returning to study was to set an Education Awards. Edgar is from the In 2016, we are particularly proud of example for her young children. Philippines and arrived in Australia in the following students who achieved Her interest in horticulture has become 2012 and settled in Mildura. He has a recognition at various regional state a passion and she thrived educationally real passion for the community and feels and national ceremonies. and personally during this time. Tracy a sense of belonging being an active believes that education is the key to a member of various community activities Indi Clarke strong community and has the power including the local Filipino community. (Certificate IV in Business) to change lives. Indi won the Aboriginal and Torres Strait Giovanni Barbera Islander Student of the Year Award at the Elliot Grayling (Diploma of Hospitality) 2016 Australian Training Awards. Indi also (Certificate III in Electrotechnology) Giovanni won the 2016 VET/TAFE/ELICOS won the Koorie Student of the Year Award Elliot reached the finalist stage in the International Student of the Year Award, at the 2016 Victorian Training Awards, Apprentice of the Year Award at the at the Council of International Students and the 2016 Mildura Rural City Council 2016 Victorian Training Awards. Elliot Australia (CISA) National Conference Australia Day Award for Young Citizen was recognised for his outstanding Awards. Giovanni came to Australia of the Year. 24-year-old Indi is a proud achievements for the second time after from Italy 3 years ago on a working Aboriginal man with great strength and winning Victorian School-based holiday to chase his dream of owning passion for working in his community to Apprentice of the Year in 2015. Elliot his own hospitality business. Giovanni’s ensure the best outcomes possible for began his apprenticeship with his father’s experience as an international student community and youth. As someone who company Grayling Electrical when he has provided personal growth and sense struggled with a traditional education, was 15, the youngest person to take on of responsibility for environmental Indi is an example that there are learning a school-based apprenticeship. Last year preservation. Joining the Slow Food pathways to suit everyone. Indi who he juggled completing year 12 and movement in Mildura has encouraged started as a business trainee at MDAS finishing his 4th year of his electrical him to promote clean, fair eating whilst is now the manager of the Koorie Youth apprenticeship. volunteering for the community and being Council in Melbourne. part of the committee.

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SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Student Awards - 2016 Indi Clarke Winner – Aboriginal and Torres Strait Islander Student of the Year Award, Certificate IV in Business (trainee, MDAS) 2016 Australian Training Awards Winner – Koorie Student of the Year Award, 2016 Victorian Training Awards Winner – Young Citizen of the Year Award, Mildura Rural City Council 2016 Australia Day Awards Tracy Mollison Finalist – Koorie Student of the Year Award, 2016 Victorian Training Awards Certificate IV in Horticulture Elliot Grayling Finalist – Apprentice of the Year Award, 2016 Victorian Training Awards Certificate III in Electrotechnology Electrician (4th year apprentice, Grayling Electrical) Giovanni Barbera Winner – VET/TAFE/ELICOS International Student of the Year Award, 2016 Diploma of Hospitality Council of International Students Australia (CISA) National Conference Awards Edgar Flores Finalist – International Student of the Year – Vocational Education and Diploma of Hospitality Training (VET) Award, 2016 Victorian International Education Awards Sunraysia team: Kyan Asimos Silver medal – Thofan, Bronze medals – Emma, Miriam and Hannah, (1st year, Chaffey’s Restaurant) Participation certificate – Kyan, Section winner – Miriam, 2016 Australian Thofan Boontham Culinary Challenge state final (2nd year, The Euston Club) Emma Thompson (2nd year, Spoons Riverside) Miriam Zahinda and Hannah Entriken (3rd year, The Rendezvous) Certificate III in Commercial Cookery apprentices Thofan Boontham Winner, 2016 Chefs of the Future Cooking Competition, Sunraysia Institute Certificate III in Commercial Cookery (2nd year apprentice, of TAFE The Euston Club) Stacey Daly Winner – Student Nurse Award, 2016 Australian Nursing and Midwifery Diploma of Nursing (trainee, Rural North West Health) Federation (Victoria Branch) award presentation ceremony Miriam Zahinda Bronze medal – 2016 National Apprentice Competition Final, Australian Certificate III in Commercial Cookery Culinary Federation (3rd year apprentice, The Rendezvous) Emma Jachowski Winner – Apprentice of the Year Award, 2015 SMGT Apprentice and Trainee Certificate III in Electrotechnology Electrician of the Year Gala Awards (apprentice, Treasury Wine Estate) Douglas Palmer Winner – Master Builders North West Section Apprentice of the Year Award, Carpentry apprentice 2016 Regional Apprentice of the Year Awards Jennifer Laurie Winner – Mildura NAIDOC Apprentice/Trainee Award, 2016 NAIDOC Ball Certificate III in Business Swan Hill Campus Student Awards 2016 Mildura Campus Students Awards 2016 Gabriele Riva Joint Winners - 2015 SUNITAFE BOARD EXCELLENCE AWARD Diploma of Conservation and Land Management Lai Poh Lee Diploma of Hospitality Lai Poh Lee Winner - Education Unit Award 2015, Hospitality, Sunraysia Institute of Diploma of Hospitality TAFE Emanuel Miranda Winner - Education Unit Award 2015, Automotive and OHS, Diploma of Automotive Technology Sunraysia Institute of TAFE Nicholas Alicastro Winner - Education Unit Award 2015, Building and Construction, Certificate III in Cabinet Making Sunraysia Institute of TAFE Simon Dean Winner - Education Unit Award 2015, Electrical, Sunraysia Institute of TAFE Certificate III in Electrotechnology Electrician Ashley Power Winner - Education Unit Award 2015, Plumbing, Sunraysia Institute of TAFE Certificate III in Plumbing Rachael Vaughan Winner - Education Unit Award 2015, Early Year Education, Diploma of Early Childhood Education and Care Sunraysia Institute of TAFE Nikkita Andrews Winner - Education Unit Award 2015, Hairdressing And Beauty, Certificate IV in Beauty Therapy Sunraysia Institute of TAFE

13 Mildura Campus Students Awards cont Devrim Arisoy Winner - Education Unit Award 2015, Health and Community Services, Certificate III in Allied Health Assistance Sunraysia Institute of TAFE Indi Clarke Winner - Education Unit Award 2015, Business, Sunraysia Institute of TAFE Certificate IV in Business Alexandra Vagelatos Winner - Education Unit Award 2015, Education and Technology, Certificate IV in Training and Assessment Sunraysia Institute of TAFE Theresa Lienhart Winner - Education Unit Award 2015, Financial Services, Certificate IV in Accounting Sunraysia Institute of TAFE Shanie Parfrey Winner - Education Unit Award 2015, Animal Industries, Certificate II in Animal Studies Sunraysia Institute of TAFE Alfred Arulandu Winner - Education Unit Award 2015, Land and Environment, Certificate III in Horticulture Sunraysia Institute of TAFE Giuseppe Scoccimarro Winner - Education Unit Award 2015, Foundation and Further Education, Certificate IV in EAL (Further Study) Sunraysia Institute of TAFE Danielle Turvey Winner - 2015 Sunraysia Institute of TAFE Apprentice of the Year Award, Certificate III in Commercial Cookery sponsored by MAS National Indi Clarke Winner - 2015 Sunraysia Institute of TAFE Trainee of the Year Award, Certificate IV in Business sponsored by Apprenticeship Support Australia Devrim Arisoy Winner - 2015 Sunraysia Institute of TAFE VETiS Student of the Year Award, Certificate III in Allied Health Assistance sponsored by SMGT Giovanni Barbera Winner - 2015 Sunraysia Institute of TAFE Vocational Student of the Year Certificate IV in Commercial Cookery Award, sponsored by La Trobe University Giovanni Barbera Winner - 2015 Sunraysia Institute of TAFE International Student of the Year Certificate IV in Commercial Cookery Award, sponsored by Mildura Development Corporation Tracy Mollison Winner - 2015 Sunraysia Institute of TAFE Koorie Student of the Year Certificate IV in Horticulture Award, sponsored by Mallee District Aboriginal Services Tracy Mollison Winner - 2015 Sunraysia Institute of TAFE Personal Achievement Award, Certificate IV in Horticulture sponsored by Mallee Family Care Swan Hill Campus Students Awards James Cusack Winner – 2015 VACC Outstanding 2nd Year Apprentice, Certificate III Heavy Commercial Vehicle sponsored by Sunraysia Institute of TAFE Ryan Gill Winner – 2015 VACC Outstanding 3rd Year Apprentice, sponsored by Certificate III Agricultural Mech Tech Sunraysia Institute of TAFE Saray Ryan Winner – 2015 David Beames Memorial Encouragement Award, Certificate III Heavy Commercial Vehicle sponsored by Wurth Australia Christopher Camm Winner – 2015 Garry Thompson Memorial Achievement Award, Certificate III Heavy Commercial Vehicle sponsored by Burson Autoparts Douglas Palmer Winner – 2015 Dahlsens Swan Hill Apprentice of the Year, Certificate III Carpentry sponsored by Dahlsens Tyler Scott Winner – 2015 Karinie Building Supplies Best Year Level Apprentice, Certificate III Carpentry sponsored by Karinie Gregory Pridmore Winner – 2015 Elsteel and Roofing Award for Apprentice of the Year, Certificate III Engineering - Fab sponsored by Elsteel Elijah Hui Winner – 2015 Engineering High Achievement Award, Certificate III Engineering - Fab sponsored by Eyles Engineering Jemma Meehan Winner – 2015 Outstanding Agriculture High Achiever Award, Certificate III in Agriculture sponsored by Swan Hill Chemicals Kyle Ellis Winner – 2015 Reese Plumbing Apprentice of the Year Award, Certificate III in Plumbing sponsored by Reece Benjamin Arentz Winner – 2015 Lawrence and Hanson Electrical Apprentice Achievement Certificate III Electrotech Electrician Award, sponsored by Lawrence and Hanson Kylie Bennett Winner – 2015 PDF Accounting Business Excellence Award, Diploma of Accounting sponsored by PDF Accounting Kellie Schulz Winner – 2015 JI Office Products High Achiever Award, Diploma of Accounting sponsored by JI Office Rachel Pumpa Winner – 2015 Diploma of Community Services Work Award, Diploma of Community Service Work sponsored by Swan Hill District Health Mary Mapapalangi Winner – 2015 Aged Care Educational Endeavour Award, Certificate III in Aged Care and Home and Community Care sponsored by McAlpines

14 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Swan Hill Campus Students Awards cont Teagan Waylen Winner – 2015 Early Childhood Education & Care High Achiever Award, Certificate III in Early Childhood Education & Care sponsored by The Book Garden Elly Gibson Winner – 2015 Early Childhood Education & Care Endeavour Award, Certificate III in Early Childhood Education & Care sponsored by The Book Garden Tamara Keating Winner – 2015 Student Services Award, Diploma of Nursing sponsored by Kents Amcal Pharmacy Bradley Britten Winner – 2015 Rural Campus Koorie Services Award, Certificate III in Aged Care sponsored by Koori Department, SuniTAFE Sarah Dedini Winner – 2015 Clinical Nursing Award, sponsored by Clarks Gift Salon Diploma of Nursing Chelsea Chambers Winner – 2015 Health & Wellbeing Academic Nursing Award, sponsored by Diploma of Nursing Sunraysia Institute of TAFE Matthew Brown Winner – 2015 Work Education Award, sponsored by Eworks Certificate I in Work Education

2016 Sponsorship Throughout 2016, SuniTAFE sponsored various community activities including: • Slow Food Mildura National Conference • Willowfest/Blive streaming • Mildura Country Music Festival • Sunraysia Rotary Charity Ball • Murray River International Music Festival

15 EDUCATION AND TRAINING

New facilities Reconnect Engagement and In 2016 SuniTAFE opened four major new Learning Support (REALS) facilities. In March the Institute opened a Program new health training facility at the Mildura A new program for disengaged youth campus incorporating two simulated commenced at SuniTAFE in 2016, the medical environment classrooms, a new REALS program engages with unemployed client reception area, and staff offices. 15-24 year olds to encourage them to pursue career gaols. Students commenced Our new Skills and Jobs Centre was also their Certificate II in General Education opened in March, located off-campus in for Adults while participating in a variety the Mildura central business district this of activities designed to reconnect them facility provides the Institute with high with society, build their confidence and visibility and enhanced access for clients. improve their employability prospects. Part of a state-wide government initiative, This program will be expanded in 2017. Skills and Jobs Centres are designed to provide assessment and advisory services Spotlight on Special to job seekers regarding training and Needs Seminars career options, and accessing support SuniTAFE facilitated a series of successful services to assist with finding a job. public seminars and training in mid- The Skills and Jobs Centre will work to 2016 promoting inclusive practices for develop key partnerships with industry youth with special needs. Approximately and community organisations to assist 200 members of the public attended the students enter work or study. program, which provided information

around supporting individuals with Autism, Later in March we opened the new dyslexia and other learning disorders, Learning Commons at the Swan Hill and working with a variety of complex campus, this facility incorporates new behaviours. health training facilities, also designed to simulate a medical environment, Delivery Highlights along with a new café, library and trade Apprenticeship enrolments were strong classrooms. in 2016, dropping by just 1% from 2015.

Training package changes in 2015 caused In September the Institute opened the a boost to apprentice numbers, so it is new Dulka Yuppata Indigenous Training pleasing to see this high level maintained centre, incorporating new classrooms, in 2016. reception area and staff offices all grouped around an open-air cultural common area. Our student retention rate increased by 6% to a very pleasing overall rate of 92.51%.

16 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

SuniTAFE‘s Student Engagement and Re-focus on local delivery Hong Kong to strengthen partnerships Retention staff have worked hard assisting In 2016, SuniTAFE made the decision to with various educational institutions. From students to overcome barriers, remain in withdraw from sub-contracting delivery July onwards the Institute was pleased study and achieve their goals wherever in order to focus on our local market, local to host our first visiting scholar from our possible. These efforts are reflected in our student outcomes, and to be responsive partner institute in China; Lily Chen, from high retention numbers. to regional Industry demands. While this Wuhan Institute of Technology spent over decision inevitably resulted in a reduction six months at SuniTAFE, working with our Traineeship enrolments grew 16% from in student numbers and enrolments in International Students Team. Lily was a 2015, largely due to a focus on core 2016, the way is now clear for the Institute delight to host and made many friends industries, and providing tailored training to concentrate on increasing our market while at SuniTAFE. plans that meet industry requirements. share in the region. A continued focus on traineeships will SuniTAFE automotive teacher Greg remain for 2017. International students Barker undertook an overseas teaching International students are drawn to placement as a foreign expert at China’s Dual Enrolment Program SuniTAFE because of its course offerings Dali Technical College. During his tenure, with La Trobe and range of university pathways, Greg instructed his Chinese students in SuniTAFE and La Trobe University have particularly with La Trobe University. Once the automotive repair methods used in formed a partnership to provide students here, our international students unfailingly the Australian environment. with the opportunity to enrol in both a fall in love with our warm climate and Diploma and Bachelor degree concurrently. relaxed regional lifestyle. In October, the Institute played host to The dual enrolment enables students the Korean Overseas Agro-Development to complete a Diploma at SuniTAFE, In 2016, there were 112 onshore Association, who were in Australia for take up work in their chosen field while international student enrolments from a a month long study tour. In October, continuing their education at university. range of countries, the largest numbers representatives from the Institute Their diploma studies are recognised as from China. attended the Australian International the first year of their bachelor program, Education Conference, and in November and students enter university directly into 2016 saw the Institute conduct a range participated in a visit to Mildura’s Chinese year two of their degree. Students exit the of international marketing activities. sister city Dali to acknowledge the 60th full program with dual qualifications and Commencing in January we saw the arrival anniversary and ten-year relationship a level of practical knowledge preparing of six former Chinese visiting scholars between Mildura Rural City Council and them well for their future career. The from Yunnan Agricultural University, Dali. During this visit, the Institute signed program was initiated to fill regional commemorating the 10-year anniversary three memorandum of understandings demand and provide clearer pathways of SuniTAFE’s first international students. with La Trobe University and partner from VET to University study. In 2016, In March, the Institute hosted 15 institutions in China, allowing for SuniTAFE enrolled 42 students in the Chinese students from Wuhan Institute guaranteed student pathway options for program across three diplomas, exceeding of Technology over a two-week English Chinese students studying in Australia. anticipated numbers. language study tour. In May, a delegation hosted by SuniTAFE visited China and The Institute does not conduct any offshore activities.

17 BUSINESS

First training system, designed to provide access points were upgraded across a stable, quality training model aligned campuses, new core switches where to industry and workforce needs. installed in the data centre, our SharePoint intranet software underwent a long The equipment funding enabled upgrades awaited update to the latest version, new to engineering design equipment and the firewall and backup software was rolled purchase of a new John Deere tractor for out, and our phone que software system the SuniTAFE farm. upgraded. John Deere tractor New approach to marketing New horticultural partnership In December of 2016, the Institute SuniTAFE and Agromillora Australia engaged the services of a local multimedia signed a five year Memorandum of and graphic design company, Saunders Understanding in 2016 for the planting Design Group. The company brings a of super high-density olives and wealth of experience in marketing and almonds at the SuniTAFE Training Farm. advertising, and will assist the Institute Hedgerow planting of these crops is new by providing a streamlined marketing to Australia, and the SuniTAFE farm will SuniTAFE and Agromillora Australia process, and a consistent standard form an important trial plot to introduce of media output. and showcase the practice. The trial will Community Service funding expose SuniTAFE Students to the newest In May, the Institute welcomed $2.9 million In a planned pivot towards a more horticulture methods and technology, in funding from the Victorian Government strategic approach to marketing, preparing them well for their future to boost vital community service activities. Saunders Design Group will be working careers. This funding allowed the Institute to with the Institute’s internal marketing continue and expand various activities and communications team to strategize SuniTAFE Employer of the directly benefiting students, employers and coordinate a range of advertising and Year Award and the wider community accessing marketing needs of the institute. Together, The SuniTAFE Employer of the Year services provided by the Institute. we are collaborating to present a fresh, Award is presented to a local employer new look to SuniTAFE advertising material who achieves excellence in the provision November Funding in 2017. of nationally recognised training to its Announcement employers. Minister for Training and Skills, Gayle ICT upgrades Tierney MP visited SuniTAFE’s Mildura 2016 was a big year for SuniTAFE’s IT The recipient of this award in 2016 Campus in November to announce funding department; we connected to Australia’s was Olam Orchards Australia. of $5.9 million plus a Specialised Teaching Academic and Research Network Equipment Initiative of $515,000. (AARNET), significantly boosting the reliability and speed of internet services. This funding assisted the Institute prepare Additional to this, 160 wireless internet for the 2017 introduction of the new Skills

18 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Financial Performance Consolidated Entity ($’000) 2016 2015 20014 2013 2012 Operating Revenue 27,995 36,886 24,023 43,949 30,301 Operating Expenses 27,981 30,431 31,709 41,954 30,215 Operating Result before Other Economic Flows 14 6,455 (7,686) 1,995 86 Other economic flows included in Net Result 309 (214) (2,965) - - Operating Result after Other Economic Flows 323 6,241 (10,651) 1,995 86 Accumulated Profit (Deficit) b/f 1st January 11,305 5,064 15,715 13,720 13,634 Transfers from Reserves - - - - - Transfers to Reserves - - - - - Transfer to Contributed Capital - - - - - Accumulated Profit (Deficit) 31st December 11,628 11,305 5,064 15,715 13,720

Summary of significant changes to financial position during the year For the financial year ended 31st December 2016, the Institute recorded a consolidated profit of $323,000. Total income achieved for 2016 was $27,995,000 compared to $36,886,000, for 2015. Excluding capital income, operating income has decreased by ($5,641,000) which is a decrease of (18%). Expenditure for 2016 totalled $27,981,000 compared to $30,431,000 for 2015, a decrease of ($2,450,000) which is a decrease of (8%). Overall employee benefits increased by $159,000, an increase of 1%, and non-salary expenses decreased by ($3,132,000) for 2016, a decrease of (25%). Financially 2016 was a challenging year for the Sunraysia Institute of TAFE. The Institute did meet some revenue targets, returning an operating profit of $323,000. There have been no events subsequent to balance date which would adversely affect the operations of the Sunraysia Institute of TAFE in subsequent years. The financial information provided in this report is consistent with that provided in the Financial Statements.

19 Staff Qualifications Investing in ourselves to better As at 31 December 2016, 82% of teaching service our community STAFF staff held a graduate or postgraduate Leadership program qualification [AQF level 5 or above], In 2016, the Institute committed to a pleasing indication of the level of a leadership development program for commitment our staff hold towards all staff. An initial 50 staff commenced quality teaching. professional development in the areas Staff development of culture, strategy, leadership and In 2016 staff member, Peter Jamieson Service awards engagement. The purpose of the program was the recipient of a VET Development At SuniTAFE, we pride ourselves on being being to develop leaders committed to the Centre Specialist Scholarship to complete an employer of choice, and are pleased growth and success of the Institute, who a Diploma of Business. to recognise the following staff who have perform in a manner consistent with the reached significant service milestones strategic direction of the organisation. Our Engineering Department teaching with us. A similar number of staff will undertake staff were successful in receiving a VET Sandra Slatter 30 years the same program in 2017. Development Centre Innovation in Digital Frank Piscioneri 25 years Learning scholarship, which was used to Carmine Dimase 20 years In November, all staff across all campuses develop an E-learning platform designed Steve Lay 20 years were brought together to participate to enhance the learning environment for Brenton Arnold 15 years in a ‘World Café Day’. The World Café both teachers and students. Geoff Buchecker 15 years methodology aims to facilitate the Denise Mluzan 15 years creation, cross‐pollination and capture Mikel Pretty 15 years of ideas, with the aim of allowing the John Riley 15 years widest group of people from the business Glenn Thompson 15 years to contribute to the future vision of Deb Broadhead 10 years SuniTAFE. Staff who had worked at the Gabrielle Cavallo 10 years Institute for many years, but never met, Kaye Dunstan 10 years came together on this day to discuss ideas Brad Fyfe 10 years to advance and grow their organisation.

20 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Retiring Staff: Tracey Forbes - Director of Education Jenny Bennett - Executive Assistant Win Scott - CEO SuniTAFE’s Director of Education, Tracey to CEO After ten years of dedicated service, Forbes retired in November after 28 years In June 2016, after 32 years, Jenny outgoing CEO Win Scott retired from the with the business. Bennett called time on her career with Institute in mid-2016. Win commenced SuniTAFE. Jenny commenced at the her career at TAFE in 1990 when she joined Tracey made an extraordinary contribution Institute in 1984, just two years after its William Angliss TAFE as a sessional teacher to SuniTAFE. In over 20 years, she worked inception, and has worked with every CEO of Hospitality Management. After rising across almost every teaching department, and Board Chair since that time. Always through the ranks to become Director commencing in 1988 as a casual teacher busy and cheerful, Jenny saw historic of Student Education and Training, in and part time in traineeships/business change during her time with the Institute, 2006 Win relocated to Mildura to take up studies. In 2003, she became the Manager the introduction of computing technology the position of CEO at SuniTAFE. Win led of Traineeships and Hospitality and was bringing the largest impact. Jenny was an SuniTAFE through a decade of significant then appointed as Head of Business and early adopter of many things, including vocational education upheaval and change, Industry Services Centre in 2006. Tracey technology, and was the first female and did so with calmness, skill, and a commenced her ultimate SuniTAFE role as employee at the Institute to challenge the strong vision of SuniTAFE’s role in the Director of Education in 2008 to form part dress code of the time by wearing pants community. of the Executive Team leading the strategic rather than skirts to work! direction of the business. Tracey led a Prior to her retirement Win was recognised large Education Division across all four As Jenny herself noted; for anyone to stay with an Honorary Doctorate of La Trobe campuses. in a position so long, they must have truly University at La Trobe University’s’ enjoyed it, and this was certainly the case graduation ceremony held on Friday 6 May. “SuniTAFE has provided life changing for Jenny. The University formerly recognised Win opportunities to many, many students over with a Honorary Doctorate in recognition the years. of her leadership and achievements as CEO of SuniTAFE. I’m proud to have contributed to that,” said Tracey.

21 FUTURE DIRECTIONS

Growth in heath training Market share 2017 will see the Institute renew its focus The SuniTAFE Board has made on growth in the delivery of Health and a strategic decision to focus on related training. Additional senior staff growing SuniTAFE’s share of the have been recruited into the health and training market in the region in nursing division and the institute is looking which it operates. Deliberate actions forward to supporting continued strong toward this outcome include - enrolments. contracting dedicated marketing expertise; understanding the needs Apprenticeships and of local industry; and ensuring we Traineeships deliver courses that match those A dedicated trainee and apprenticeships needs. Commencing in 2017, Staff team will be established in 2017 to raise professional development plans will the profile of trainee and apprenticeships incorporate an increased focus on across the region. Traineeships are a industry collaboration and ensuring great way for students to gather skills and our staff are current with the most knowledge; however this is not always up to date technical knowledge in fully appreciated by business. This group their field. will aim to increase the awareness of traineeships and their benefits with local Victorian Skills businesses. Commissioner The Victorian government has created Leadership training a new position of Victorian Skills The Institute has committed to a Commissioner, and developed an significant investment in its staff industry engagement framework, through leadership development and which is focused on understanding personal growth training. Training, which the future skills needs of industry. commenced in 2016, will continue SuniTAFE will work in collaboration throughout 2017 and beyond, and will with the commissioner’s office and be aimed at improving the ability of our local industry to ensure the Mildura employees to work collaboratively with and Swan Hill regions benefit from local Industry and community. this government initiative.

22 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

FUTURE OUR VISION, MISSION DIRECTIONS AND VALUES

Our Vision Through the Higher Education and Skills strategic directions for the Institute SuniTAFE will deliver education and Group, the Board is accountable to the and ensuring the Institute operates in training that creates career opportunities responsible state Minister. The responsible accordance with its strategic and and pathways to university. Minister in 2016 is detailed in Note 21(i) business plans; of the financial statements. • ensuring compliance, risk Our Mission management and reporting To be an outstanding service provider, The Board is charged with responsibility for frameworks are in place and controls working in partnership with students ensuring the Institute performs its duties are implemented and regularly tested; and customers to achieve their goals. for the public benefit, within the context of • the making, amending and revocation the functions, powers and duties conferred of rules for the good order and Our Values upon it by the Constitution, applicable Law management of the Institute; and subordinate instruments, and relevant • evaluating the performance of the CEO We value learning excellence, innovation industrial awards. and managing all matters in relation and integrity and the needs of our to the CEO’s employment contract; and customers are important to us. The objectives of the • regularly evaluating the performance of the Board and individual directors Governance Board are: to ensure the Board is achieving its SuniTAFE objectives, powers and functions • to ensure the delivery of high quality purpose. are set out in our governing document - education and training programs and The Constitution of the Sunraysia Institute services with a particular focus on the The Board of Sunraysia Institute of of Technical and Further Education. In North West region of Victoria; TAFE is committed to ensuring effective 2016, the Institute reported to Parliament • to ensure that the provision of governance practices that reflect through The Hon. Steve Herbert, MP, programs and services are responsive accountability, transparency, professional Minister for Training and Skills, from 01 to the needs of Institute clients, integrity, and ethical behaviour within an January 2016 until 09 November 2016, promote the competitiveness of inclusive framework based on trust and and the Hon. Gayle Tierney MP from 09 industry, enhance the opportunities honesty. The Board executes its duties November 2016 until 31 December 2016. of individuals, and exceed the expectations of the community; and in accordance with the Public Sector Director’s Code of Conduct. Governance and organisational structure • to govern the Institute efficiently Sunraysia Institute of TAFE is governed by and effectively, ensuring appropriate Board Chair – Leonie Burrows a Board of Directors, established by the compliance and risk management Ministerial Board Chair, appointed Order in Council titled the Constitution of frameworks are effected, and 16 April 2013 the Sunraysia Institute of Technical and resources are used prudently solely in Further Education Order 2013, made under the Institutes’ and the public interest; Leonie is an experienced Management section 3.1.11(2) of the Education and Consultant and Company Director who Training Reform Act 2006. The Board’s duties include: • establishing vision, mission and also has local government, horticulture

23 and education CEO experience. She has Committees of the Board processes are in place. Other duties extensive skills in leadership, financial The Board has established an active include managing the processes of management, governance and project committee structure that capitalises on recruitment, induction and performance management. In her consulting business, the skills and experiences of individual review of Board Directors, making she specialises in organisational analysis, Board Directors. The Committees recommendations to the Board on all strategic planning, business planning, are established to assist the Board in matters relating to the CEO’s employment research and training and facilitation. meeting its constitutional duties in the and executive remuneration matters, Leonie is also a partner in Burrows management of the Institute through and reviewing new and existing Jewellers retail business. the application of sound corporate Institute policies. Leonie is a current member of the governance practices. Institute’s Audit, Finance and Risk The Board committee structure is subject Audit, Finance and Risk Committee, the Governance Committee, to annual review and committees have Committee membership TSAF Project Control Group, and TAFE clear objectives and terms of reference, (as at 31 December 2016) Kids Inc. Project Control Group. Leonie is which are consistent with the corporate Mr Rod Markwell (Chair) a very active member of the community governance objectives of the Board. The Mrs Leonie Burrows (Board Chair) and heads a number of Boards and Committees are led by the Board and are Mr Geoff Dea Committees, with positions including: not management-driven, and operate in Ms Inga Dalla Santa Chair, Victorian TAFE Association accordance with the following guidelines: Ms Amanda Phillips Chair, Sunraysia Community Health Service • All members are non-Executive Director, Murray Primary Health Network Directors The Audit, Finance and Risk Committee Committee Member, Loddon Mallee • All members are independent links the Board with the Institute’s Regional Development Australia members continuous audit program, and provides Committee Member, Northern Mallee • The Chairperson of the Board cannot advice and recommendation on Leadership Program be the Chairperson of a Committee matters pertaining to financial and risk Chair, Organising Committee, • The Chair of each Committee is management strategies. The Committee 2016 Victorian State Fire Brigade selected annually by the Board Chair is charged with responsibility for: Championships. and endorsed by the Board. • overseeing the scope and execution of the internal audit plan; Board Directors in 2016 Governance Committee • reviewing the integrity and Ms Leonie Burrows (Board Chair) membership effectiveness of the Institute’s Mr Rod Markwell (as at 31 December 2016) financial reporting systems and Ms Kay Martin Ms Kay Martin (Chair) controls monitoring the effectiveness Ms Amanda Phillips Mrs Leonie Burrows (Board Chair) of the Institutes processes for Ms Lydia Senior Mr Terry Jennings ensuring compliance with its fiduciary Mr Terry Jennings Ms Lydia Senior and statutory obligations in relation Mr Greg Hutchison Mr Owen Russell to financial reporting; (commenced 22 August 2016) (concluded 30 June 2016) • oversight of the preparation of Mr Mark Liddle Ms Trudie Chant financial statements and other (commenced 22 August 2016) (concluded 30 June 2016) published financial data; Mr Geoff Dea • conducting regular reviews of the Mr Ross Goonan The Governance Committee assists the Institute’s Risk Management (commenced 1 July 2016) Board to oversee the Institute’s corporate Framework, strategic risk register Mr Owen Russell governance and ensure compliance with and Fraud Management Plan; (concluded 30 June 2016) the Institute’s statutory obligations. • ensuring appropriate management Ms Trudie Chant The Committee has stewardship of of matters pertaining to risk and (concluded 30 June 2016) the Institute’s governance framework fraud control; Mr Justin Lachal and promoting a corporate culture of • and reviewing new and existing (commenced 1 July 2016) accountability, integrity, and transparency financial and accounting policies

• ensuring that appropriate compliance and procedures.

24 25

ORGANISATIONAL MANAGEMENT

2016 EXECUTIVE DIRECTORS Director Operations, Chief Executive Officer, Ms Win Scott Mr Frank Piscioneri (January – June 2016), Mr Geoff Dea (June – December 2016) This division is responsible for financial management and the management The CEO is responsible for implementing of resources and services to ensure the strategic direction as established quality services are developed and by the Institute’s Board. This includes maintained in accordance with the developing the strategic and underpinning Institute’s objectives. plans, allocating resources and ensuring that policies and reports are in place for Director Organisational Capability, the Institute to meets its legislative and Mr Anthony Mills contractual obligations. The primary objective of this division is to drive the strategic capability of Director Education, Ms Tracey Forbes the Institute through the development, The primary objective of this division implementation and delivery of the is driving training activity through the Workforce Development Strategy. planning, development, provision and reporting of quality, responsive and flexible training services for students, employers and the community.

26 ORGANISATIONAL STRUCTURE

BOARD

Chair Leonie Burrows

Governance Committee Audit, Finance and Risk Committee Kay Martin Rod Markwell

Chief Executive Officer Win Scott/Geoff Dea

Education Operations Organisational Capability Tracey Forbes - Director Frank Piscioneri - Director Anthony Mills - Director

Education Units Corporate Services HR services Education Support Learning Support TAFEKids Childcare Centre Marketing Facilities Client Services Work Health and Safety ICT Business Improvement

27 COMPLIANCE

Sunraysia Institute of TAFE complies with all relevant legislation and subordinate Environmental Performance instruments including, but not limited to, the following: Sunraysia Institute of TAFE is committed • Education and Training Reform Act 2006 to environmentally sustainable practices. • TAFE institute constitution In 2016, the Institute continued its • Directions of the Minister for Training and Skills (or predecessors) commitment to improving environmental • TAFE institute Commercial Guidelines performance. • TAFE institute Strategic Planning Guidelines • Public Administration Act 2004 • Financial Management Act 1994 • Freedom of Information Act 1982 • Building Act 1983 • Protected Disclosure Act 2012 • Victorian Industry Participation Policy Act 2003

Environmental Data Unit 2015 2016 Greenhouse Gas % Measure Emissions CO2-e Energy Electricity 1 Megajoule 5796943 6027991 2174.64 3.9 Natural Gas 2 Megajoule 3165484 3239905 179.60 2.3 LPG 3 Megajoule 328572 333116 18.44 1.5 Green Power 4 Megajoule N/A N/A - - Renewable 5 Megajoule 1019463 1004220 - -1.5 Waste Landfill Kg 50820 47330 - -6.8 Recycle 6 (cardboard, paper, glass, Kg 12390 15280 - 23.5 cans) - Metals 7 Kg 9470 11280 - 19.5 - Engine oil 7 Litres 900 900 - - - Cooking oil 9 Litres - 800 - 100 - E-waste 7 Units 573 808 - 41.0 - Miscellaneous Equipment 7 $ 6025 5473 - -9.2 Plantation A4 Ream 54 48 - -11.0 Paper 50% recycle A4 Ream 2853 2812 - -1.5 80% recycle A4 Ream 553 504 - -8.5 Water (metered) Domestic Kilolitres 23097 15782 - -32.0 Reused Kilolitres 532 532 - - Fuel Unleaded Petrol Litre 28311 24756 56.47 -12.4 Diesel Litre 20905 20071 53.61 -4.0 Travel Vehicle km 506344 572523 - 13.1 Air km 288257 269493 115.3 -6.5 Greenhouse Gas Electricity, gas, fuel, air travel 8 Tonnes 2566 2600 - 1.33 Emissions CO2-e

28 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Notes: 1. Sites: Mildura campus, NCS, Dow Avenue farm, Swan Hill campus and Robinvale campus. 2. Sites: Mildura campus and NCS. 3. Sites: Mildura campus, Dow Avenue farm and Swan Hill campus 4. Sites: Mildura campus, NCS, Dow Avenue farm, Swan Hill campus and Robinvale campus 5. Sites: Mildura campus, NCS and Swan Hill campus. PV solar; total of 182kW (Greener Government Building Project) plus 7kW (4 x 1.75kW systems) 6. Sites: Mildura campus site only recorded as contractor weights all waste. 7. Sites: Mildura campus, Dow Avenue farm and Swan Hill campus. 8. Sites: Mildura campus, NCS and Swan Hill campus. 9. Sites: Mildura campus and Swan Hill campus

Energy of paper sent to shredding bins has Greenhouse Gas Emissions Electricity – hotter summer temperatures increased by 1375kg. Calculated only on electricity, gas, fuel and and colder winter days over longer air travel. Total emissions show a slight periods plus the addition of new nursing Additional Inclusions increase due to Natural Gas, LPG and classrooms (Mildura & Swan Hill) also a • Metals – Engineering, plumbing, electricity usage. new canteen and library (Swan Hill) saw automotive, and farm departments an increase in energy consumption. recycle all metals. Future Targets • Engine oil – Automotive training The targets for electricity and natural Natural Gas – colder weather during departments. Swan Hill campus gas consumption have been estimated winter saw slight increase in consumption donated 600lts of oil to local for 2016/2017 (period of one year) as figures. swimming pool which is licenced to per Green Government Building Project. use as fuel for furnace to heat the pool. Unanticipated climatic conditionals in LPG – Swan Hill campus consumption • Cooking oil – data on recycling of 2016 have had an impact on previous set increased due to colder temperatures cooking oil from canteens, commercial targets. and new canteen which has gas cooking cooking & hospitality areas is now Electricity: 5% reduction for 2016/2017 appliances. available. (one year from all systems transitioning to • E-waste – computers, monitors, online). Green Power - no longer purchased due to servers, electronics, mobile phones, Natural Gas: 5% reduction for 2016/2017 installation of 178 kW of PV solar panels now includes cabling which are either (one year from all systems transitioning to across three sites (Benetook Ave, NCS and sold/recycled. online). Swan Hill). • Miscellaneous equipment – obsolete 2017 targets for all other environmental equipment, furniture and unrequired aspects have been set at 2016 achieved Renewable Energy – total installation items sold through online auctions. results - as reported in the table above. of 182kW PV solar panels as part of the Greener Government Building Project FTE figures: Based on total number of staff and students using facilities now completed. The solar panels are operational across three sites (Benetook Full Time Equivalent Staff & Students (FTE) 2016 Ave, NCS and Swan Hill). Original renewable 2675 energy generation was from 4 x 1.75 Per FTE Per Square Metre kW PV solar systems which are still Power (Megajoules) 2253.46 238.93 in operation. 2016 generation totals Power CO2-e (Tonnes) 0.81 0.09 were down; two inverters (30kW) were Natural Gas (Megajoules) 1211.18 128.41 offline over premium energy generation Waste (Kg) 23.41 2.48 period due to equipment failure and long Paper (Ream) 1.26 - replacement time. Water (Kilolitres) 5.91 0.63 Fuel (Litres) 10 223.02 - Waste Air Travel CO2-e (Tonnes) 10 0.57 - Total waste has decreased by 1%, recycling practices have improved and amount

29 Energy Use Greenhouse Gas Emissions appropriate application fee (the fee Energy data is captured in kWh - converted Refer additional column in Environmental may be waived in certain to megajoules using rate of 1 kWh = 3.6 Data table. circumstances). MJ/h. Fuel emission totals have reduced due to Formal requests for access to documents Square metre figures are calculated for purchase of fuel efficient fleet vehicles. or records are required to be directed to: total campus facilities used including LPG emissions have increased, due to office space. longer periods of colder temperatures Mr Anthony Mills during winter months. Freedom of Information Officer/Director Waste Production Organisational Capability Waste data is captured in tonnes – Procurement Sunraysia Institute of TAFE converted to kilograms using rate of 1 A Procurement Policy has been set in PO Box 1904, Mildura VIC 3502 Tonne = 1000 Kg for FTE place and purchasing from local business is encouraged to ensure a sustainable Requests can also be lodged online at Recycling waste has risen to 22.2% of total community. www.foi.vic.gov.au Access charges may waste, an increase of 11.46% on 2015 also apply once documents have been figures. Freedom of Information processed and a decision on access is Sunraysia Institute of TAFE has made; for example photocopying and Paper Use implemented procedures, which subject search and retrieval charges. Units of paper have been calculated using to privacy and confidentiality provisions staff and student FTE total. facilitate all reasonable requests for Further information regarding Freedom information from students, staff and the of Information can be found at Water Consumption general public without recourse to the www.foi.vic.gov.au. Units of metered water calculated for both Freedom of Information Act 1982. One FTE kilolitres and square metre. request for information under the Act National Competition Policy was received in 2016. The Institute has established mechanisms Transportation to ensure that the National Competition Fuel data captured in litres. Access to documents may be obtained Policy including the requirements of the Fuel and Air Travel CO2-e have been through written request to the Freedom following Government Policy Statements calculated using staffing figures(201) only of Information Manager, as detailed in s17 are observed; ‘Competitive Neutrality: for FTE. Note10 of the Freedom of Information Act 1982. Statement of Victorian Government Policy’ In summary, the requirements for making and ‘Victorian Government Timetable for All campuses are located in regional and a request are: the Review of Legislative Restrictions on rural areas, many staff and students travel • it should be in writing; Competition’ and any subsequent reforms. from regional areas to sites where there is • it should identify as clearly as possible limited public transport. which document is being requested; and • it should be accompanied by the

30 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Non-Academic Student Fees Maintenance and Victorian Industry The Institute levies a compulsory student Capital Works Participation Policy services and amenities fee. The fee is The Sunraysia Institute of TAFE takes all (VIPP) fully applied to the provision of funding reasonable steps to ensure that Institute No contracts applicable to the VIPP were for student recreation, counselling and buildings conform to relevant building commenced or completed in 2016. welfare and other non-academic support standards and codes; including the services. National Construction Code (NCC), the Protected Disclosure Act 2012 Victorian Building Act 1993, and Victorian The Protected Disclosure Act 2012 The processes for the collection and Building Regulations 2006. encourages and assists people in making disbursement of the services and disclosures of improper conduct by amenities fees are managed by the Institute buildings in existence prior public officers and public bodies. The Act Institute and are not paid to any student to the introduction of the Building Act provides protection to people who make organisations. 1993 comply with the relevant building disclosures in accordance with the Act regulations existent at that time. The and establishes a system for the matters Total Student Services and Amenities Fees Institute’s ongoing maintenance programs disclosed to be investigated and rectifying collected for the year ending 31 December and any improvements or alterations action to be taken. 2016 by the Institute was $231,074. to buildings are completed in a manner compliant with the relevant requirements The Institute does not tolerate improper Materials fees are separate and of the Building Act 1993. conduct by employees, nor the taking compulsory. These fees enable students of reprisals against those who come to access the resources needed for SuniTAFE retains all plans and forward to disclose such conduct. It is completion of their course. Materials documentation for building extensions committed to ensuring transparency and charges are set by each department at and new buildings. Upon completion accountability in its administrative and SuniTAFE, and vary from course to course. of construction, the Institute obtains management practices and supports the In 2016 total materials fees were $691,522 Certificates of Occupancy and Final making of disclosures that reveal corrupt A list of fees and charges is available on Inspection from the relevant Building conduct, conduct involving a substantial the Institute’s website: Surveyors. mismanagement of public resources, www.sunitafe.edu.au or conduct involving a substantial In 2016 the Institute undertook major risk to public health and safety or the works (greater than $50,000) as follows: environment. • Mildura Campus Redevelopment, incorporating the Dulka Yuppata The Institute will take all reasonable Indigenous Training Centre along with steps to protect people who make such a new health training facility, and a disclosures from any detrimental action new campus front entrance. in reprisal for making the disclosure. It will • Swan Hill Campus Learning Commons also afford natural justice to the person and Trades Classrooms. who is the subject of the disclosure to the extent it is legally possible.

31 One request under the Freedom of Victorian Public Sector relations and marketing activities Information Act 1982 was received by the Travel Principles undertaken by the Institute to develop Institute during 2016. No disclosures of community awareness of the Institute The Sunraysia Institute of TAFE has formal improper conduct or detrimental action and its services; mechanisms in place to ensure that all were referred to or from the Ombudsman • details of assessments and measures travel by employees is approved and or taken over by the Ombudsman. There undertaken to improve the undertaken in accordance with Victorian were no recommendations made by the occupational health and safety of Public Sector Travel Principles and the Ombudsman under the Act that related employees; Australian Tax Office guidelines. to the Institute. • a general statement on industrial relations within the entity and details Additional Information Carer’s Recognition Act 2012 of time lost through industrial Available on Request (Carer’s Act) accidents and disputes; In compliance with the requirements of The Sunraysia Institute of TAFE has taken • a list of major committees sponsored the Standing Directions of the Minister all practical measures to comply with its by the Institute, the purposes of each for Finance, details in respect of the items obligations under the Carers Recognition committee and the extent to which the listed below have been retained by the Act 2012 to ensure staff have an purposes have been achieved; and Institute and are available on request, awareness and understanding of the care • details of all consultancies and subject to the provisions of the Freedom relationship principles set out in the Act. contractors including: of Information Act 1982. The Institute has an equal opportunity • consultants/contractors engaged; policy in place that entitles staff • services provided; and • a statement that declarations of to reasonable flexibility in working • expenditure committed to for each pecuniary interests have been duly arrangements where needed to engagement. completed by all relevant officers; accommodate their carer responsibilities. • details of shares held by a senior In delivering services to the community, Enquiries regarding details of any of the officer as nominee or held beneficially the Institute is guided by its access and above should be addressed to: in a statutory authority or subsidiary; equity policy which promotes adherence • details of publications produced by the to the principles of access and equity and Anthony Mills Institute about itself, and how these directs that Institute practices be inclusive Director Organisational Capability can be obtained; and should not unreasonably prevent Sunraysia Institute of TAFE • details of changes in prices, fees, individuals from accessing services or PO Box 1904, Mildura VIC 3502 charges, rates and levies charged by participating in learning. Staff and/or Ph.: 03 50223705 the Institute; students in a carer’s role are encouraged Email: [email protected] • details of any major external reviews to access a range of services offered by Web: www.sunitafe.edu.au carried out on the Institute; the Institute, including Student Support • details of major research and Services such as counselling, disability development activities undertaken by support and participation services. New the Institute; staff are made aware of these policies as • details of overseas visits undertaken part of their induction. including a summary of the objectives and outcomes of each visit; • details of major promotional, public

32 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Risk Management Attestation Workforce Information I, Leonie Burrows – Board Chair, certify Fixed that the Sunraysia Institute of TAFE has Ongoing Employees term & complied with the Ministerial Standing Casual Direction 3.7.1 – Risk Management Employees Full time Part time FTE FTE Framework and Processes. The Sunraysia (Headcount) (Headcount) (Headcount) Institute 161 117 44 137 41 Institute of TAFE Audit Committee has June 2016 verified this. TAFE Kids Inc 12 9 3 9 10 Total 173 126 47 146 50 Institute 164 116 48 128 55 June 2015 TAFE Kids Inc. 9 6 3 8 10 Total 173 122 51 136 65 Leonie Burrows Board Chair Sunraysia Institute of TAFE 28/02/2017

Major Commercial Activity In 2016, the Sunraysia Institute of TAFE did not undertake any major commercial activities. This is reported in accordance with section 45 of the Financial Management Act 1994, together with matters listed under Commercial Guideline 10 (clause 27).

Controlled Entities Under section 45 of the Financial Management Act 1994 a copy of the accounts of TAFE Kids Inc. prepared in accordance with the requirements of the Financial Management Act 1994 and is included in the audited Financial Report; Note 23.

33 Workforce Information cont 30 June 2016 30 June 2015 Institute Ongoing Fixed term Ongoing Fixed term & Casual & Casual

Gender Employee FTE FTE Employee FTE FTE (Headcount) (Headcount) Male 65 60 15 68 57 21 Female 96 77 27 96 70 34 Sub total 161 137 41 164 128 55 Controlled Entity Male 0 0 0 0 0 1 Female 12 9 9 9 9 9 Sub total 12 9 9 9 9 10 Consolidated Total 173 146 50 173 137 65 Institute Age Under 25 4 3 2 3 3 4 25-34 22 19 4 22 16 10 35-44 48 37 13 45 32 15 45-54 32 29 10 40 33 9 55-64 46 42 10 48 40 17 Over 64 9 7 2 8 4 3 Sub Total 161 137 41 166 128 58 Controlled Entity Age Under 25 2 1 1 0 0 1 25-34 1 1 3 2 2 1 35-44 5 4 4 2 2 4 45-54 2 2 1 2 2 1 55-64 2 1 0 1 1 0 Over 64 0 0 0 0 0 0 Sub Total 12 9 9 7 7 7 Consolidated Total 173 146 50 173 135 65 Classification PACCT 1 4 2 1 4 2 1 PACCT 2 22 17 8 27 20 9 PACCT 3 19 14 3 15 9 3 PACCT 4 13 12 1 15 14 1 PACCT 5 18 14 0 15 12 0 PACCT 6 6 6 1 7 4 2 PACCT 7 3 3 1 6 4 0 PACCT 8 4 4 0 4 3 0 T4CAS1 0 0 9 0 0 6 T5CAS1 0 0 1 0 0 1 T 1 0 0 1 0 0 0 T 2 1 1 4 1 1 9 T 3 0 0 2 0 0 0 T 4 8 7 4 10 9 6 T 5 45 41 4 44 36 8 SE1 3 3 1 6 6 2 SE2 1 1 0 1 1 0

34 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

30 June 2016 30 June 2015 Ongoing Fixed term Ongoing Fixed term & Casual & Casual

Classification Employee FTE FTE Employee FTE FTE (Headcount) (Headcount) SE3 6 5 1 8 6 0 NONEXEC.1 4 3 0 2 2 2 EXEC.1 3 3 0 0 0 4 CEO 1 1 0 0 0 1 Sub Total 161 137 42 165 128 56 Controlled Entity CSE2 1 1 0 1 1 0 CSE3 3 1 6 1 1 7 CSE4 4 4 4 5 4 3 CSE5 2 1 0 ESA 6 1 1 0 1 1 0 DIRL3.6.9 1 1 0 1 1 0 Sub Total 12 9 10 9 8 10 Consolidated Total 173 146 52 174 136 66

TAFE Workforce Data Reporting Format 2016 Full Time Part Time Casual Institute Ongoing Fixed Term Ongoing Fixed Term Teacher Other PACCT 59 10 16 2 0 5 Executive 4 4 0 0 0 0 0 Teacher 44 44 9 14 6 10 0 Sub Total 107 19 30 8 10 5 Other Controlled Entity 7 6 2 1 0 3 Consolidated Total 114 25 32 9 10 8

NOTES All figures reflect active employees in the last full pay period of June of each year.

‘Ongoing employees’ refers to those engaged on an open-ended contract of employment and executives engaged on a standard executive contract who were active in the last full pay period of June.

FTE means full time staff equivalent. Headcounts exclude those persons on leave without pay or absent on secondment, external contractors/consultants, temporary staff employed by employment agencies, and a small number of people who are not employees but appointees to a statutory office, as defined in the Public Administration Act 2004.

‘Controlled entity’ refers to TAFEKids Inc. Childcare Centre - owned by the Sunraysia Institute of TAFE.

35 ICT expenditure ($ million) BAU ICT expenditure Non-BAU ICT expenditure Operational expenditure Capital expenditure Total Total = A+ B A B $2,152,042 0 $2,152,042 0

Consultancies OH & S Performance Indicators In 2016, the Institute undertook one Measure KPI 2014 2015 2016 Note consultancy totalling $10 000 or greater. Incidents Employees 1 Reported Minor The expenditure incurred during 2016 12 15 12 (6/100 FTE) in relation to consultancies totalled Students Minor 28 16 12 (6/100 FTE) $85, 577.20 (excl. GST). Significant 0 1 0 (0/100 FTE) Visitors In 2016, there were no consultancies Minor 0 1 1 (0.5/100 where the total fees payable to the FTE) 2 consultants were less than $10 000. The Claims Work Cover Claims 0 0 0 (0/100 FTE) Lost Time 0 0 0 (0/100 FTE) total expenditure incurred during 2016 Fatalities - - - in relation to these consultancies is Claim Costs Total paid on claims $267.04 0 0 3 $00.00 (excl. GST). Details of individual Work Cover Premium $131,433 $97,066.97 $98,542.50 consultancies (valued at $10,000 Industry Premium Rate 0.9500% 0.9500% 0.768% or greater) can be viewed at Institute Premium Rate 0.7428% 0.7164% 0.5549% Risk Hazards identified 4 https://www.sunitafe.edu.au/reports Management and managed. 76 37 51 -and-registration/. (25.5/100 FTE)

1. Staff, contractors, and students are required to report all incidents and near misses. The downward trend in both number Occupational Health and severity of incidents continued in this reporting period. and Safety 2. Zero Work Cover claims, and zero time lost for third consecutive year. 3. Premiums stated are exclusive of GST. The Institute’s good performance in this area has resulted in continued downward In 2016, SuniTAFE continued to pressure on the premium rate. The slight rise in actual premium is attributable to increase in total remuneration. demonstrate its strong commitment to Our performance is 27% better than industry average. occupational health and safety through 4. Active hazard identification is conducted through workplace inspection program, and direct hazard reporting. its strategy to ensure that all students, staff, contractors, volunteers, and visitors experience an environment at SuniTAFE that is safe. During 2016, there has been a continued focus on improving all aspects of SuniTAFE’s occupational health and safety management system.

36 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Statement of Financial Performance for the year ended 31 December 2016

37 Level 24, 35 Collins Street Melbourne VIC 3000 VAGO Telephone 61 3 8601 7000 Facsimilie 61 3 8601 7010 Victorian Auditor-General's Office Website www.audit.vie.gov.au

INDEPENDENT AUDITOR'S REPORT

To the Board of Sunraysia Institute of TAFE

Opinion I have audited the accompanying Statement of Financial Performance for 2016 of Sunraysia Institute of TAFE (the Institute) which comprises the: • statement of financial performance and • the declaration by the board chair, chief executive officer and chief finance and accounting officer. In my opinion, the statement of financial performance of Sunraysia Institute of TAFE in respect of the year ended 31 December 2016 presents fairly, in all material respects.

Basis for opinion I have conducted my audit in accordance with the Audit Act 1994 which incorporates the Australian Standards on Assurance Engagements. My responsibilities under the Act are further described in the Auditor's Responsibilities for the Audit of the Statement of financial performance section of my report. The Auditor-General's independence is established by the Constitution Act 1975. I and my staff are independent of the Institute in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for ProfessionalAccountants (the Code) that are relevant to my audit of the statement of financial performance in Australia and have also fulfilled our other ethical responsibilities in accordance with the Code. I believe that the audit evidence I have obtained is sufficientand appropriate to provide a basis for my opinion.

Board's The Board of the Institute is responsible for the preparation and fair presentation of the responsibilities statement of financial performance and for such internal control as the Board determines for the statement is necessary to enable the preparation and fair presentation of the statement of financial of financial performance that is free from material misstatement, whether due to fraud or error. performance

Auditing in the Public Interest

38 Independent Auditor's Report (continued)

Auditor's As required by the Audit Act 1994, my responsibility is to express an opinion on the responsibilities statement of financial performance based on the audit. My objectives for the audit are for the audit of to obtain reasonable assurance about whether the statement of financial performance the statement of as a whole is free from material misstatement, whether due to fraud or error, and to financial issue an auditor's report that includes my opinion. Reasonable assurance is a high performance level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Standards on Assurance Engagements will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this statement of financial performance. As part of an audit in accordance with the Australian Standards on Assurance Engagements, I exercise professional judgement and maintain professional scepticism throughout the audit. I also: • identify and assess the risks of material misstatement of the statement of financial performance, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement ·resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the lnstitute's internal control. • evaluate the overall presentation, structure and content of the statement of financial performance, including the disclosures, and whether the statement of financial performance represents the underlying events and results in a manner that achieves fair presentation. I communicate with the Board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

MELBOURNE 30 March 2017

/ I

Auditing in the Public Interest

39 Key Performance Indicators for the year ended 31 December 2016

Key Performance Indicators

Explanation of Key Performance Indicators Description and methodology Metric 2016 Target 2016 Actual Prior year result variances Breakdown of training revenue split by Government funded and Fee for Service Training revenue diversity Training revenue split by: Percentage 1 • Victorian Training 71% 74% 73% Guarantee (VTG) • Fee for Service (FFS) 29% 26% 27%

Employment and Third Party training delivery costs as a proportion of Employment costs as a training revenue (VTG and FFS) Percentage 85% 133% 2 109% proportion of training revenue Employment costs + 3 rd party training delivery costs / Training Revenue

Training Revenue (excl. revenue delivered by third parties) per Training revenue per teaching Teaching FTE* Dollars $200,000 $117,517 3 $156,231 FTE* Training Revenue (excl. revenue delivered by 3 rd parties) / Teaching FTEs* Operating margin % Operating margin percentage EBIT excluding Capital Contributions) / Percentage 0.00% -8.2% 4 -2.70% Total Revenue (excl. Capital Contributions) Increase enrolments Provide additional programs and 10% > Increase FFS Percentage 23% < 2015 5 27% training places particularly in the 2015 health, agri-business and trades sectors

22% > Increased student fees Percentage 32% < 2015 6 $16,535,435 2015

Increase Health delivery SCH 93,340 47,395 7 54,324

Increase Agribusiness delivery SCH 153,004 82,283 8 107,484

Increase Trades delivery SCH 360,415 307,124 371,879 9

Indigenous enrolments Increased enrolments and retention Number 340 332 10 340 rates for Indigenous learners Indigenous retention rate Percentage 70% 89.20% Unknown Increased market share in Loddon Market Share Percentage 50% 24.40% 11 25.20% Mallee North

Achieve a positive EBITDA (excluding EBITDA Dollars Positive -$251,000 $8,167,000 capital contributions)

40 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Key Performance Indicators (cont)

Explanation Prior year Key Performance Indicators Description and methodology Metric 2016 Target 2016 Actual of variances result - Updated AMP Asset management plan updated and targets identified in funded grants Yes/No Yes Yes NA - Funding fully acquitted achieved and funds fully acquitted

Additional services to industry Industry Engagement promoted and quantified – measured Number 4 4 NA and reported through CRM

Job Placements Number 30 20 NA 12

Students continuing into further Number 50 94 13 NA study Closer alignment to the skills needs of the community through the SaJC

Employer, industry and Number NA 360 NA community consultations

Respondents to learner 14 Number 600- 700 847 644 engagement survey Quality compliance statistical data Learner satisfaction improved Points 80 76.7 15 74.5 Employer Satisfaction Points 80 74.2 16 83.5

Build Organisational Capability through developing an Organisational Capability Plan to address the results Capability Plan (incorporating of the Capability Assessment. Vocational Teaching Register) Yes/No Yes No 17 NA developed Providing professional development to ensure that staff members have the skills they need to meet organisational requirements

Business Improvement projects Yes/No Yes Yes NA undertaken

Personal Professional Development Plan completed for Yes/No Yes No 18 NA each staff member

TAFE institutes are expected to participate in good faith, through the Victorian TAFE Association and with TAFE Teachers MEA finalised in the AEU, in the negotiation of a service Yes/No Yes No 19 NA preparation for 2017 delivery partnership plan for the successor TAFE teachers' agreement for 2017 and beyond

New Board Directors to SuniTAFE will work with the Yes/No Yes Yes NA undertake induction training Department to ensure that the necessary implementation tasks are completed to enable a successful Staff representative elected to transition to the new governance Yes/No Yes Yes NA Board structures

To implement the changes recommended by the Auditor- General’s 2014 Snapshot Audit into VAGO audit report findings TAFE institutes. TAFE audit monitored and reviewed by the Yes/No Yes Yes NA committees are expected to Institute’s Audit Committee implement appropriate monitoring mechanisms to ensure audit findings are resolved by management

41 Key Performance Indicators (cont)

Explanation Prior year Key Performance Indicators Description and methodology Metric 2016 Target 2016 Actual of variances result

Lean Management processes implemented in 2016 for projects Yes/No Yes Yes NA commenced in 2015 Improve business processes to reduce waste, improve performance and reduce costs Four new Lean projects 20 Yes/No Yes No NA conducted

International enrolments Number 200 112 21 131 Increase delivery to onshore international students International revenue Dollars $1,500,000 $717,275 $822,628 22

Grow traineeships, including in the personal care industry, through Traineeships SCH 92,360 35, 051 23 29,288 promotion to employers and learners via the Skills and Jobs Centre

NA Dual enrolments in health Commence delivery of Diploma to Program not programs with La Trobe Degree health programs in partnership Number 10 42 24 offered in 2015 University with La Trobe University

To support morale and performance People Matters Survey Action SuniTAFE will develop and implement Yes/No Yes Yes 25 NA Plan developed strategies to address Survey findings

Notes: 1. The VTG and FFS ratio is difficult to predict as the breakup is unknown until enrolments occur throughout the year. The Institute has exceeded its target of VTG by 3% and did not meet its target of FFS by 3%.

2. Employment costs as a proportion of training revenue has increased from 109% in 2015 to 133% in 2016 mainly due to the reduction in partnership income due to the phasing out of partnership delivery. This has resulted in a reduction of ($3.5M) in partnership and Victorian Government Training Guarantee (VTG) income decreased by ($702K). Employment costs has reduced by ($385K), as a result percentage of employment costs as a proportion of training revenue has increased.

3. Training revenue per EFT has reduced from $156,231 in 2015 to $117,517 in 2016 which is mainly due to the institute not achieving its training revenue targets. Actual revenue achieved was 68% of the yearly budget.

4. Operating margin has reduced significantly mainly due to the phasing out of partnership delivery which has resulted in a decrease of ($3.5M) partnership income from 2015 to 2016 and a reduction in (VTG) income from 2015 to 2016 equal to $717,703.

5. The Institute achieved FFS income of $2,969,279 in 2015 compared to $2,282,591 resulting in a decrease in revenue of $686,688 which is due to a lower level of enrolments.

6. Students fees have reduced mainly due to the phasing out of partnership delivery which has resulted in a decrease of ($3.5M) partnership income from 2015 to 2016 as well as a reduction in (VTG) income from 2015 to 2016 which has a direct impact on student fees reducing from 2015 $16.5M to $11.2M. 7. A transition in our teaching environment contributed to the ambitious target of 93,340 student contact hours not being achieved, with the actual result being 47,395 student contact hours. The opening of the new health facilities in Swan Hill and Mildura is expected to enable growth in 2017.

8. The Institute's Agribusiness target was based around subcontracting arrangements in place at the time of target setting. Subsequent withdrawal from third party subcontracting delivery reduced the overall number of 2016 enrolments.

9. Higher than anticipated trade enrolment results in 2015 created inflated expectations for 2016 which were not met.

10. Difficulty in recruiting a replacement Koorie Unit manager in 2016 resulted in reduced communication with the indigenous community and reduced enrolments. Although enrolments were only slightly down from 2015, with the opening of the new Dulka Yuppata Centre in late 2016, the Institute has the opportunity to focus on increasing Indigenous enrolments. 11. The ambitious market share target was not met, largely as a result of continued aggressive price competition from private RTOs and the Institute's community obligation to deliver niche courses in a thin student market.

42 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Key Performance Indicators (cont) 12. The placement component of the Institute's workability program did not attract the number of applicants expected, with approximately 20% of students taking up the up the option of placement after training. This was the result of students having already commenced employment or further study. 13. An increased focus and communication of pathway options better enabled students to take up further training. 14. A concentrated effort in 2016 to to increase responses, through incentives and follow up through the Quality and Compliance unit resulted in a higher response rate.

15. Further internal analysis has been undertaken, although target was not met, a small increase in satisfaction rate on 2015 was recorded. Additional time will be required to meet the ambitious target. 16. Further analysis has been undertaken at senior leadership level. An employer communication strategy has been put in place to address areas of concern raised in the survey.

17. Draft plan completed, to be finalised and submitted in March 2017 as per Higher Education and Skills Group timeline. 18. Personal Development Plans were completed for the majority of staff. HR did not have complete visibility on all staff PD Plans. Lack of a HRIS system requires the Institute to rely on manual systems; therefore, the information is not always consolidated in one location resulting in monitoring and reporting challenges. However a 2016 change in process has resulted in an increased focus on strategic professional development. 19. Union negotiations commenced in July 2016. Negotiations will recommence in February 2017.

20. One new project commenced in 2016, three planned projects were postponed pending results of internal structural change.

21. A significant number of student applicants encountered visa rejections from the Department of Immigration , resulting in fewer students being eligible for enrolment than anticipated.

22. A significant number of student applicants encountered visa rejections from the Department of Immigration, resulting in fewer international students enrolling.

23. An ambitious 2016 target based on government initiatives was set, however competition from other providers impacted achievement of this target. A 16% improvement on 2015 traineeship enrolments was however achieved. 24. The dual enrolment program achieved a larger than anticipated student take-up due to successful joint promotional activities with La Trobe University. 25. A continuous improvement working party has been formed to address areas of concern. Actions have been identified and implementation of these actions has commenced.

43 Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

44 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Declaration

FINANCIAL REPORT FOR YEAR ENDED 31 DECEMBER, 2016

DECLARATION BY THE BOARD CHAIR CHIEF EXECUTIVE OFFICER AND CHIEF FINANCE AND ACCOUNTING OFFICER

We certify that the attached financial statements for the Sunraysia Institute of TAFE has been prepared in accordance with Standing Direction 5.2 of the Financial Management Act 1994, applicable Financial Reporting Directions issued under that legislation, Australian Accounting Standards and other mandatory professional reporting requirements.

We further state that, in our opinion, the information set out in the comprehensive operating statement, balance sheet, statement of changes in equity, cash flow statement and notes to and forming part of the financial report, presents fairly the financial transactions during the year ended 31 December 2016 and financial position of the Institute as at 31 December 2016.

At the date of signing this financial report, we are not aware of any circumstance that would render any particulars included in the financial report to be misleading or inaccurate. There are reasonable grounds to believe that the Institute will be able to pay its debts as and when they became due and payable.

The Board Chair and the Chief Executive Officer sign this declaration as delegates of, and in accordance with a resolution of, the Board of the Sunraysia Institute of TAFE.

Board Chair Chief Executive Officer Leonie Burrows Geoff Dea

Date 23 March 2017 Date 23 March 2017

Place: Mildura Place: Mildura

Chief Finance & Accounting Officer Frank Piscioneri

Date 23 March 2017

Place: Mildura

45 Level 24, 35 Collins Street Melbourne VIC 3000 VAGO Telephone 61 3 8601 7000 Facsimilie 61 3 8601 7010 Victorian Auditor-General's Office Website www.audit.vie.gov.au

INDEPENDENT AUDITOR'S REPORT

To the Board of Sunraysia Institute of TAFE

Opinion I have audited the consolidated financial report of Sunraysia Institute of TAFE (the Institute) and its controlled entities (together the consolidated entity), which comprises the: • consolidated entity and Institute balance sheets as at 31 December 2016 • consolidated entity and Institute comprehensive operating statements for the year then ended • consolidated entity and Institute statement of changes in equity for the year then ended • consolidated entity and Institute cash flow statements for the year then ended . • notes including a summary of significant accounting policies and • the declaration by the board chair, chief executive officer and chief finance and accounting officer.

In my opinion the financial report presents fairly, in all material respects, the financial position of the consolidated entity and the Institute as at 31 December 2016 and their financial performance and cash flows for the year then ended in accordance with the financial reporting requirements of Part 7 of the FinancialManagement Act 1994 and applicable Australian Accounting Standards. Basis for opinion I have conducted my audit in accordance with the Audit Act 1994 which incorporates the Australian Auditing Standards. My responsibilities under the Act are further described in the Auditor's Responsibilities for the Audit of the Financial Reportsection of my report. The Auditor-General's independence is established by the Constitution Act 1975. My staff and I are independent of the Institute in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for ProfessionalAccountants (the Code) that are relevant to my audit of the financial report in Australia. My staff and I have also fulfilled our other ethical responsibilities in accordance with the Code. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Board's The Board of the Institute is responsible for the preparation and fair presentation of the responsibilities financial report in accordance with Australian Accounting Standards and the Financial for the financial Management Act 1994, and for such internal control as the Board determines is report necessary to enable the preparation and fair presentation of a financial report that is free from material misstatement, whether due to fraud or error. In preparing the financial report, the Board is responsible for assessing the lnstitute's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless it is inappropriate to do so.

Auditing in the Public Interest

46 Independent Auditor's Report (continued)

Auditor's As required by the Audit Act 1994, my responsibility is to express an opinion on the responsibilities financial report based on the audit. My objectives for the audit are to obtain reasonable for the audit of assurance about whether the financial report as a whole is free from material the financial misstatement, whether due to fraud or error, and to issue an auditor's report that report includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with the Australian Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also: • identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the lnstitute's internal control. • evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board. • conclude on the appropriateness of the Board's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the lnstitute's ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor's report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor's report. However, future events or conditions may cause the Institute to cease to continue as a going concern. • evaluate the overall presentation, structure and content of the financial,report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. I communicate with the Board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

MELBOURNE 30 March 2017 /

Auditingin the Public Interest

47 Financial Statements for Sunraysia Institute of TAFE Comprehensive Operating Statement for the year ended 31 December 2016

Consolidated Institute 2016 2015 2016 2015 Note $'000 $'000 $'000 $'000 Continuing operations Income from transactions Government contributions - operating 2(a)(i) 17,274 21,878 17,274 21,878 Government contributions - capital 2(a)(ii) 2,170 5,420 2,170 5,420 Sale of goods and services 2(b) 7,896 9,435 6,355 8,244 Interest 2(c) 102 111 99 108 Other income 2(d) 553 42 493 24 Total income from transactions 27,995 36,886 26,391 35,674

Expenses from transactions Employee expenses 3(a) 18,265 18,106 17,006 17,111 Depreciation and amortisation 3(b) 1,763 1,712 1,738 1,694 Supplies and services 3(c) 6,114 8,329 5,960 8,186 Other operating expenses 3(d) 1,839 2,284 1,805 2,256 Total expenses from transactions 27,981 30,431 26,509 29,247 Net result from transactions (net operating balance) 14 6,455 (118) 6,427

Other economic flows included in net result Net gain/(loss) on non-financial assets 4(a) (20) (37) (20) (37) Net gain/(loss) on financial instruments 4(b) 149 (55) 149 (55) Other gains/(losses) from other economic flows 4(c) 180 (122) 170 (110) Total other economic flows included in net result 309 (214) 299 (202) Net result from continuing operations 323 6,241 181 6,225

Net result 323 6,241 181 6,225

Other economic flows - other comprehensive income Items that will not be reclassified to net result Changes in physical asset revaluation surplus 15 3,127 - 3,127 - Total other economic flows – Other comprehensive income 3,127 - 3,127 - Comprehensive result 3,450 6,241 3,308 6,225 The comprehensive operating statement should be read in conjunction with the notes to the financial statements.

48 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Financial Statements for Sunraysia Institute of TAFE Balance Sheet as at 31 December 2016

Consolidated Institute 2016 2015 2016 2015 Note $'000 $'000 $'000 $'000 Assets Financial assets Cash and deposits 16(a) 8,311 5,228 7,902 4,964 Receivables 5 1,996 1,734 2,118 1,820 Investments and other financial assets 6 109 106 38 36 Total financial assets 10,416 7,068 10,058 6,820

Non-financial assets Inventories 7 90 108 90 108 Property, plant and equipment 8 41,885 35,982 41,100 35,191 Intangible assets 9 2,978 3,313 2,978 3,313 Other non-financial assets 10 668 524 668 524 Total non-financial assets 45,621 39,927 44,836 39,136 Total assets 56,037 46,995 54,894 45,956

Liabilities Payables 11 3,378 2,257 3,347 2,193 Provisions 12 2,819 2,966 2,720 2,861 Borrowings 13 5,869 1,254 5,869 1,254 Other liabilities 14 38 36 38 36 Total liabilities 12,104 6,513 11, 974 6,344

Net assets 43,933 40,483 42,920 39,612

Equity Accumulated surplus/(deficit) 11,628 11,305 10,827 10,646 Physical asset revaluation surplus 15 25,308 22,181 25,096 21,969 Contributed capital 6,997 6,997 6,997 6,997 Net worth 43,933 40,483 42,920 39,612

Commitments for expenditure 17 327 6,271 327 6,271 Contingent assets and contingent liabilities 18 - - - - The balance sheet should be read in conjunction with the notes to the financial statements.

49 Financial Statements for Sunraysia Institute of TAFE Statement of Changes in Equity for the year ended 31 December 2016

Physical asset Accumulated Contributions by Total revaluation surplus owner surplus Consolidated Note $'000 $'000 $'000 $'000 At 1 January 2015 22,181 5,064 6,997 34,242 Net result for the year - 6,241 - 6,241 Year ended 31 December 2015 22,181 11,305 6, 997 40, 483 Net result for the year 3,127 323 3,450 Year ended 31 December 2016 25,308 11,628 6,997 43, 933

Physical asset Accumulated Contributions by Total revaluation surplus owner surplus Institute Note $'000 $'000 $'000 $'000 At 1 January 2015 21,969 4,421 6,997 33,387 Net result for the year - 6,225 - 6,225 Year ended 31 December 2015 21,969 10,646 6, 997 39, 612 Net result for the year 3,127 181 3,308 Year ended 31 December 2016 25,096 10,827 6, 997 42, 920 The statement of changes in equity should be read in conjunction with the notes to the financial statements.

50 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Financial Statements for Sunraysia Institute of TAFE Cash Flow Statement for the year ended 31 December 2016

Consolidated Institute 2016 2015 2016 2015 Note $'000 $'000 $'000 $'000 Cash flows from operating activities Receipts Government contributions - operating 17,180 20,669 17,180 20,122 Government contributions - capital 2,170 5,420 2,170 5,420 User fees and charges received 6,623 7,889 5,106 7,287 Goods and services tax recovered from the ATO 986 114 973 107 Interest received 102 111 99 108 Other receipts 1,104 1,134 766 875 Total receipts 28,165 35,337 26,294 33,919

Payments Payments to suppliers and employees (25,537) (29,348) (23,829) (27,973) Goods and services tax paid to the ATO (112) (407) (114) (434) Total payments (25,649) (29,755) (23,943) (28,407) Net cash flows from/(used in) operating activities 16(c) 2,516 5,582 2,351 5,512

Cash flows from investing activities Proceeds from sale of PPE 189 132 189 132 Purchases of non-financial assets (4,413) (3,094) (4,393) (2,764) Net cash provided by/(used in) investing activities (4,224) (2,962) (4,204) (2,632)

Cash flows from financing activities Proceeds from borrowings 5,000 - 5,000 - Repayment of borrowings (209) - (209) - Net cash flows from/(used in) financing activities 4,791 - 4,791 -

Net increase/(decrease) in cash and cash equivalents 3,083 2,620 2,938 2,880 Cash and cash equivalents at the beginning of the financial year 5,228 2,608 4,964 2,084 Cash and cash equivalents at the end of the financial year 16(a) 8,311 5,228 7,902 4,964 The above cash flow statement should be read in conjunction with the notes to the financial statements.

51 Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2015

CONTENTS

Note Accompanying Note Page 1 Statement of significant accounting policies 53 2 Income from transactions 63 3 Expenses from transactions 64 4 Other economic flows included in net result 65 5 Receivables 66 6 Investments and other financial assets 67 7 Inventories 68 8 Property, plant and equipment 69 9 Intangible assets 72 10 Other non-financial assets 73 11 Payables 74 12 Provisions 75 13 Borrowings 77 14 Other Liabilities 78 15 Reserves 79 16 Cashflow Information 80 17 Commitments for expenditure 81 18 Contingent assets and contingent liabilities 82 19 Superannuation 83 20 Financial instruments 84 21 Responsible persons and executive officers 92 22 Related parties 94 23 Controlled entities 95 24 Remuneration of auditors 96 25 Subsequent events 97 26 Economic dependency 98 27 Institute detail 99

52 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 1 Summary of significant accounting policies

The annual financial statements represent the audited general purpose financial statements for Sunraysia Institute of TAFE and controlled entity (‘Consolidated Group’-or-‘Group’), and the separate financial statements and notes of Sunraysia Institute of TAFE as an individual parent entity (‘Parent-Entity’-or-‘Institute’). The accounting policies set out below have been applied in preparing the financial statements for the year ended 31 December 2016 and the comparative information presented for the year ended 31 December 2015. The following is a summary of the material accounting policies adopted by the Institute in the preparation of the financial report. The accounting policies have been consistently applied unless otherwise stated. 1.01 Statement of compliance These general purpose financial statements have been prepared in accordance with the Financial Management Act 1994 (FMA) and applicable Australian Accounting Standards (AAS) which include Interpretations, issued by the Australian Accounting Standards Board (AASB). In particular, they are presented in a manner consistent with the requirements of the AASB 1049 Whole of Government and General Government Sector Financial Reporting. For the purposes of preparing financial statements, the Institute is classed as a not-for-profit entity. Where appropriate, those AAS paragraphs applicable to not-for-profit entities have been applied.

Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported. 1.02 Basis of accounting preparation and measurement The financial statements were authorised for issue by the Board members on the 23rd of March 2016. The accrual basis of accounting has been applied in the preparation of these financial statements whereby assets, liabilities, equity, income and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid.

These financial statements are presented in Australian dollars, the functional and presentation currency of the Institute, and have been prepared in accordance with the historical cost convention. Historical cost is based on the fair values of the consideration given in exchange for assets. Exceptions to the historical cost convention include: • non-financial physical assets which, subsequent to acquisition, are measured at a revalued amount being their fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent impairment losses. Revaluations are made with sufficient regularity to ensure that the carrying amounts do not materially differ from their fair value;

• the fair value of an asset other than land is generally based on its depreciated replacement value; Financial Viability The financial statements are prepared on a going concern basis. The Department of Education and Training has provided confirmation that it will provide Sunraysia Institute of TAEF adequate cash flow support to meet its current and future obligations as and when they fall due for a period up to June 2018 (refer to Note 26 Financial Dependency)

Critical accounting judgement and key sources of estimation uncertainty Judgements, estimates and assumptions are required to be made about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on professional judgements derived from historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. The estimates and associated assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and also in future periods that are affected by the revision. Judgements made by management in the application of AASs that have significant effects on the financial statements and estimates relate to: • the fair value of land, buildings, infrastructure, plant and equipment; • superannuation expense; and • actuarial assumptions for employee benefit provisions based on likely tenure of existing staff, patterns of leave claims, future salary movements and future discount rates. Fair value measurement Consistent with AASB 13 Fair Value Measurement , the Institute determines the policies and procedures for both recurring fair value measurements such as property, plant and equipment, biological assets, investment properties and financial instruments and for non-recurring fair value measurements such as non-financial physical assets held for sale, in accordance with the requirements of AASB 13 and the relevant Financial Reporting Directions.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: • Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities • Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; and • Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. The Intstitute's assets are subject to a revaluation model, as directed by the State's Financial Reporting Directions. The Institute records non-current tangible assets at fair value (depreciated replacement cost), with revaluations completed every five years as required by FRD 103E Property, Plant and Equipment. The most recent valuation was completed at 31 December 2016 for plant and equipment, 31 December 2013 for land and 31 December 2012 for buildings. From the valuation performed at 31 December 2016 on plant and equipment, it was determined that depreciated replacement cost materially reflected fair value, hence no adjustment was required. During the interim years, an annual fair value assessment is undertaken by applying the VGV indices to ensure that the carrying value of the assets is not materially different from the fair value as at balance sheet date. The Institute uses indicies provided by the VGV to complete these assessments. The Valuer General Victoria (VGV) is the Corporation's independent valuation agency. For the purpose of fair value disclosures, the Institute has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above. In addition, the Institute determines whether transfers have occurred between levels in the hierarchy by re assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. 1.03 Reporting entity The financial statements cover the Sunraysia Institute of TAFE as an individual reporting entity. The Institute is a statutory body corporate, established pursuant to an act made by the Victorian Government under the Education and Training Reform Act 2006. Its principal address is: Sunraysia Institute of TAFE 453 Benetook Avenue Mildura. Victoria 3500 The financial statements include all the controlled activities of the entity.

53 Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 1 Summary of significant accounting policies

1.04 Basis of consolidation In accordance with AASB 10 Consolidated Financial Statements, the consolidated financial statements of the Institute combine like items of assets, liabilities, equity, income, expenses and cash flows of the Institute with those of the reporting entities controlled by the Institute. Uniform accounting policies for like transactions and other events in similar circumstances are applied in the preparation of consolidated financial statements. A controlled entity is an entity over which the Institute has exposure or rights to variable returns from its involvement with the entity, and the ability to affect those returns though the use of its power over the entity. The existence of power over an entity is established when the Institute has existing rights that give it the current ability to direct the activities of the controlled entity which would significantly affect the returns of the controlled entity. Where control of an entity is obtained during the financial period, its results are included in the comprehensive operating statement from the date on which control commenced. Where control ceases during a financial period, the entity’s results are included for that part of the period in which control existed. All intragroup assets, liabilities, equity, income, expenses and cash flows relating to transactions between entities of the group are eliminated in full on consolidation. If a member of the group uses accounting policies other than those adopted in the consolidated financial statements for like transactions and events in similar circumstances, appropriate adjustments are made to that group member’s financial statements in preparing the consolidated financial statements to ensure conformity with the group’s accounting policies.

Entities consolidated into the Institute's reporting entity include: TAFE Kids Inc. Consistent with the requirements of AASB 1004 Contributions, contributions by owners (that is, contributed capital and its repayment) are treated as equity transactions and, therefore, do not form part of the income and expenses of the Institute. 1.05 Scope and presentation of financial statements Comprehensive operating statement The comprehensive operating statement comprises three components, being ‘net result from transactions’ (or termed as ‘net operating balance’), ‘other economic flows included in net result’, as well as ‘other economic flows – other comprehensive income’. The sum of the former two, together with the net result from discontinued operations, represents the net result. The net result is equivalent to profit or loss derived in accordance with AASs.

‘Other economic flows’ are changes arising from market remeasurements. They include: • gains and losses from disposals of non-financial assets; • revaluations and impairments of non-financial physical and intangible assets; • remeasurement arising from defined benefit superannuation plans;

Balance sheet Assets and liabilities are presented in liquidity order with assets aggregated into financial assets and non-financial assets. Current and non-current assets and liabilities are disclosed in the notes, where relevant. In general, non-current assets or liabilities are expected to be recovered or settled more than 12 months after the reporting period, except for the provisions of employee benefits, which are classified as current liabilities if the Institute does not have the unconditional right to defer the settlement of the liabilities within 12 months after the end of the reporting period. Cash flow statement Cash flows are classified according to whether or not they arise from operating, investing, or financing activities. This classification is consistent with requirements under AASB 107 Statement of Cash Flows. For cash flow statement presentation purposes, cash and cash equivalents include bank overdrafts, which are included as current borrowings on the balance sheet. Statement of changes in equity The statement of changes in equity presents reconciliations of non-owner and owner changes in equity from opening balances at the beginning of the reporting period to the closing balances at the end of the reporting period. It also shows separately changes due to amounts recognised in the ‘Comprehensive result’ and amounts related to ‘Transactions with owner in its capacity as owner’. 1.06 Events after reporting date Assets, liabilities, income or expenses arise from past transactions or other past events. Where the transactions result from an agreement between the Institute and other parties, the transactions are only recognised when the agreement is irrevocable at or before balance date. Adjustments are made to amounts recognised in the financial statements for events which occur after the reporting date and before the date the statements are authorised for issue, where those events provide information about conditions which existed at the reporting date. Note disclosure is made about events between the reporting date and the date the statements are authorised for issue where the events relate to conditions which arose after the reporting date and are considered to be of material interest. 1.07 Goods and Services Tax (GST) Income, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet. Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority are presented as operating cash flow. Commitments and contingent assets or liabilities are presented on a gross basis. 1.08 Income from transactions Income is recognised to the extent that it is probable that the economic benefits will flow to the entity and the income can be reliably measured at fair value. Amounts disclosed as income are, where applicable, net of returns, allowances and duties and taxes. Revenue is recognised for each of the Institute’s major activities as follows: Government contributions Government contributions are recognised as revenue in the period when the Institute gains control of the contributions. Control is recognised upon receipt or notification by relevant authorities of the right to receive a contribution for the current period. Sale of goods and services (i) Student fees and charges Student fees and charges revenue is recognised by reference to the percentage of services provided. Where student fees and charges revenue has been clearly received in respect of courses or programs to be delivered in the following year, any non-refundable portion of the fees is treated as revenue in the year of receipt and the balance as Revenue in Advance. (ii) Fee for Service Fee for service revenue is recognised by reference to the percentage completion of each contract, i.e. in the reporting period in which the services are rendered. Where fee for service revenue of a reciprocal nature has been clearly received in respect of programs or services to be delivered in the following year, such amounts are disclosed as Revenue in Advance. (iii) Revenue from sale of goods Revenue from sale of goods is recognised by the Institute when: (a) the significant risks and rewards of ownership of the goods have transferred to the buyer; (b) the Institute retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; (c) the amount of revenue can be reliably measured; (d) it is probable that the economic benefits associated with the transaction will flow to the Institute; and (e) the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Interest Interest income includes interest received on bank term deposits and other investments and the unwinding over time of the discount on financial assets. Interest income is recognised using the effective interest method which allocates the interest over the relevant period. 1.09 Expenses from transactions Expenses from transactions are recognised as they are incurred, and reported in the financial year to which they relate. Employee benefits Expenses for employee benefits are recognised when incurred, except for contributions in respect of defined benefit plans. Retirement benefit obligations (i) Defined contribution plan Contributions to defined contribution plans are expensed when they become payable. (ii) Defined benefit plans

54 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 1 Summary of significant accounting policies

The amount charged to the statement of comprehensive income in respect of superannuation represents the contributions made by the Institute to the superannuation plan in respect of current services of current Institute staff. Superannuation contributions are made to the plans based on the relevant rules of each plan. The Institute does not recognise any deferred liability in respect of the plan(s) because the Institute has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as and when they fall due. The Department of Treasury and Finance recognises and discloses the State's defined benefit liabilities in its finance report. Depreciation and amortisation Depreciation Depreciation is provided on property, plant and equipment, including freehold buildings but excluding land. Depreciation is generally calculated on a straight-line basis and reducing balance, at rates that allocate the asset's value, less any estimated residual value, over its estimated useful life. Leasehold improvements are depreciated over the period of the lease or estimated useful life, whichever is the shorter, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period, and adjustments made where appropriate.

55 Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 1 Summary of significant accounting policies

Depreciation methods and rates used for each class of depreciable assets are:

Class of asset Method 2016 2015 Buildings Diminishing 2.5% 2.5% Value / Straight Line Plant & equipment Diminishing 10.0% - 25.0% 10.0% - 25.0% Value / Straight Line Motor vehicles Diminishing 20% 20% Value / Straight 33.33% - 50% 33.33% - 50% Line Library collections Diminishing 10.0% 10.0% Value / Straight Line Amortisation Intangible assets with finite lives are amortised on a straight line basis over the assets useful lives. Amortisation begins when the asset is available for use, that is, when it is in the location and condition necessary for it to be capable of operating in the manner intended by management. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each annual reporting period. In addition, an assessment is made at each reporting date to determine whether there are indicators that the intangible asset concerned is impaired. If so, the assets concerned are tested as to whether their carrying value exceeds their recoverable amount.

Class of asset Method 2016 2015 Software Diminishing 10% - 33% 10% - 33% Value / Straight Line Intangible assets with indefinite lives are not amortised. The useful life of intangible assets that are not being amortised are reviewed each period to determine whether events and circumstances continue to support an indefinite useful life assessment for that asset. In addition, the Institute tests all intangible assets with indefinite lives for impairment by comparing its recoverable amount with its carrying amount: (a) annually; (b) whenever there is an indication that the intangible asset may be impaired. Any excess of the carrying amount over the recoverable amount is recognised as an impairment loss.

Interest Expense Interest expense is recognised in the period in which it is incurred. Interest expense includes interest on advances, loans, overdrafts, bonds and bills, deposit, interest components of finance lease repayments, and amortisation of discounts or premiums in relation to borrowings. Grants and other transfers Grants and other transfers to third parties are recognised as an expense in the reporting period in which they are paid or payable. Fair value of assets and services provided free of charge or for nominal consideration Resources provided free of charge or for nominal consideration are recognised at their fair value when the Institute obtains control over them, irrespective of whether these contributions are subject to restrictions or conditions over their use. Contributions in the form of services are only recognised when a fair value can be reliably determined and the services would have been purchased if not received as a donation.

1.10 Other economic flows included in net result Other economic flows measure the change in volume or value of assets or liabilities that do not result from transactions. Net gain/(loss) on non-financial assets Net gain/(loss) on non-financial assets and liabilities includes realised and unrealised gains and losses from revaluations, impairments, and disposals of all physical assets and intangible assets.

Disposal of non-financial assets Any gain or loss on disposal of non-financial assets is recognised at the date control of the asset is passed to the buyer and is determined after deducting from the proceeds the carrying value of the asset at the time. Impairment of non-financial assets Goodwill and intangible assets with indefinite useful lives (and intangible assets not yet available for use) are tested annually for impairment (i.e. as to whether their carrying value exceeds their possible recoverable amount and so require write downs). All other assets are assessed annually for indications of impairment, except for: •Inventories; • Financial assets; If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their possible recoverable amount. Where an asset's carrying value exceeds its recoverable amount, the difference is written off by a charge to the statement of comprehensive income, except to the extent that the write down can be debited to an asset revaluation reserve amount applicable to that class of asset. If there is an indication that there has been a change in the estimate of an asset’s recoverable amount since the last impairment loss was recognised, the carrying amount shall be increased to its recoverable amount. This reversal of the impairment loss occurs only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised in prior years. It is deemed that, in the event of the loss or destruction of an asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has been made. The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less costs to sell. Recoverable amount for assets held primarily to generate net cash flows is measured at the higher of the present value of future cash flows expected to be obtained from the asset and fair value less costs to sell. It is deemed that, in the event of the loss of an asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has been made. Net gain/(loss) on financial instruments Net gain/(loss) on financial instruments includes realised and unrealised gains and losses from revaluations of financial instruments that are designated at fair value through profit or loss or held-for-trading, impairment and reversal of impairment for financial instruments at amortised cost, and disposals of financial assets. Revaluations of financial instruments at fair value The revaluation gain/(loss) on financial instruments at fair value excludes dividends or interest earned on financial assets, which is reported as part of income from transactions.

56 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 1 Summary of significant accounting policies

Impairment of financial assets Financial assets have been assessed for impairment in accordance with Australian Accounting Standards. Where a financial asset's fair value at balance date has reduced by 10 per cent or more than its cost price; or where its fair value has been less than its cost price for a period of 6 or more months, the financial instrument is treated as impaired.

Bad and doubtful debts are assessed on a regular basis. Those bad debts considered as written off by mutual consent are classified as a transaction expense. The allowance for doubtful receivables and bad debts not written off by mutual consent are adjusted as ‘other economic flows’.

In assessing impairment of statutory (non-contractual) financial assets, which are not financial instruments, professional judgement is applied in assessing materiality using estimates, averages and other computational methods in accordance with AASB 136 Impairment of Assets. Other gains/(losses) from other economic flows Other gains/(losses) from other economic flows include the gains or losses from reclassifications of amounts from reserves and/or accumulated surplus to net result, and from the revaluation of the present value of the long service leave liability due to changes in the bond interest rates. This classification is consistent with the whole government reporting format and is allowed under AASB 101 Presentation of Financial Statements. 1.11 Financial instruments Financial instruments arise out of contractual agreements that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Categories of non derivative financial instruments Loans and receivables Loans and receivables are financial instrument assets with fixed and determinable payments that are not quoted on an active market. These assets are initially recognised at fair value plus any directly attributable transaction costs. Subsequent to initial measurement, loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

Loans and receivables category includes cash and deposits (refer to Note 1.11), term deposits with maturity greater than three months, trade receivables, loans and other receivables, but not statutory receivables. Financial liabilities at amortised cost Financial instrument liabilities are initially recognised on the date they are originated. They are initially measured at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial instruments are measured at amortised cost with any difference between the initial recognised amount and the redemption value being recognised in profit and loss over the period of the interest-bearing liability, using the effective interest rate method. 1.12 Financial assets Cash and deposits Cash and deposits, including cash equivalents, comprise cash on hand and cash at bank, deposits at call and those highly liquid investments with an original maturity of three months or less, which are held for the purpose of meeting short term cash commitments rather than for investment purposes, and which are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. For cash flow statement presentation purposes, cash and cash equivalents includes bank overdrafts, which are included as borrowings on the balance sheet. Receivables Receivables consist of: • statutory receivables, which include predominantly amounts owing from the Victorian Government and GST input tax credits recoverable; and • contractual receivables, which include debtors in relation to goods and services, loans to third parties, accrued investment income, and finance lease receivables Receivables that are contractual are classified as financial instruments. Statutory receivables are not classified as financial instruments. Receivables are recognised initially at fair value and subsequently measured at amortised cost, using the effective interest method, less an allowance for impairment. A provision for doubtful receivables is made when there is objective evidence that the debts may not be collected and bad debts are written off when identified. Investments and other financial assets Investments are classified in the following categories: • loans and receivables; The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition. Any dividend or interest earned on the financial asset is recognised in the consolidated comprehensive operating statement as a transaction. Derecognition of financial assets A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when: •the rights to receive cash flows from the asset have expired; or • the Institute retains the right to receive cash flows from the asset, but has assumed an obligation to pay them in full without material delay to a third party under a ‘pass through’ arrangement; or • the Institute has transferred its rights to receive cash flows from the asset and either: (a) has transferred substantially all the risks and rewards of the asset, or (b) has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. Where the Institute has neither transferred nor retained substantially all the risks and rewards or transferred control, the asset is recognised to the extent of the Institute’s continuing involvement in the asset. Impairment of financial assets At the end of each reporting period, the Institute assesses whether there is objective evidence that a financial asset or group of financial assets is impaired. Objective evidence includes financial difficulties of the debtor, default payments, debts which are more than 60 days overdue, and changes in debtor credit ratings. All financial instrument assets, except those measured at fair value through profit or loss, are subject to annual review for impairment.

1.13 Leases A lease is a right to use an asset for an agreed period of time in exchange for payment. Leases are classified at their inception as either operating or finance leases based on the economic substance of the agreement so as to reflect the risks and rewards incidental to ownership. Leases of property, plant and equipment are classified as finance infrastructure leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership from the lessor to the lessee. All other leases are classified as operating leases Operating leases Institute as lessee Operating lease payments, including any contingent rentals, are recognised as an expense in the comprehensive operating statement on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern of the benefits derived from the use of the leased asset. The leased asset is not recognised in the balance sheet.

57 Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 1 Summary of significant accounting policies

1.14 Non-Financial Assets Inventories Inventories include goods and other property held either for sale or for distribution at a zero or nominal cost, or for consumption in the ordinary course of business operations.

Inventories held-for-distribution are measured at cost, adjusted for any loss of service potential. All other inventories, including land held for sale, are measured at the lower of cost and net realisable value. Where Inventories are acquired for no cost or nominal consideration, they are measured at current replacement cost at the date of acquisition. The basis used in assessing loss of service potential for inventories held-for-distribution include current replacement cost and technical or functional obsolescence. Technical obsolescence occurs when an item still functions for some or all of the tasks it was originally acquired to do, but no longer matches existing technologies. Functional obsolescence occurs when an item no longer functions the way it did when it was first acquired. Property, plant and equipment All non-financial physical assets, are measured initially at cost and subsequently revalued at fair value less accumulated depreciation and impairment. Where an asset is received for no or nominal consideration, the cost is the asset’s fair value at the date of acquisition. The fair value of cultural assets and collections, heritage assets and other non-financial physical assets that the State intends to preserve because of their unique historical, cultural or environmental attributes, is measured at the replacement cost of the asset less, where applicable, accumulated depreciation (calculated on the basis of such cost to reflect the already consumed or expired future economic benefits of the asset) and any accumulated impairment. These policies and any legislative limitations and restrictions imposed on their use and/or disposal may impact their fair value. The fair value of infrastructure systems and plant, equipment and vehicles, is normally determined by reference to the asset’s depreciated replacement cost, or where the infrastructure is held by a for-profit entity, the fair value may be derived from estimates of the present value of future cash flows. For plant, equipment and vehicles, existing depreciated historical cost is generally a reasonable proxy for depreciated replacement cost because of the short lives of the assets concerned. The cost of constructed non-financial physical assets includes the cost of all materials used in construction, direct labour on the project, and an appropriate proportion of variable and fixed overheads. For the accounting policy on impairment of non-financial physical assets, refer to Note 1.09 on Impairment of non-financial assets.

Library collections Library collections are recognised initially at cost and subsequently measured at fair value less accumulated depreciation and impairment in accordance with FRD103F. Revaluations of non-financial physical assets Non-financial physical assets measured at fair value are revalued in accordance with Financial Reporting Directions (FRDs) issued by the Minister for Finance. A full revaluation normally occurs every five years, based upon the asset’s government purpose classification, but may occur more frequently if fair value assessments indicate material changes in values. Independent valuers are generally used to conduct these scheduled revaluations. Revaluation increases or decreases arise from differences between an asset’s carrying value and fair value. Net revaluation increases (where the carrying amount of a class of assets is increased as a result of a revaluation) are recognised in ‘other economic flows – other comprehensive income’, and accumulated in equity under the asset revaluation surplus. However, the net revaluation increase is recognised in the net result to the extent that it reverses a net revaluation decrease in respect of the same class of property, plant and equipment previously recognised as an expense (other economic flows) in the net result. Net revaluation decrease is recognised in ‘other economic flows – other comprehensive income’ to the extent that a credit balance exists in the asset revaluation surplus in respect of the same class of property, plant and equipment. Otherwise, the net revaluation decreases are recognised immediately as other economic flows in the net result. The net revaluation decrease recognised in ‘other economic flows – other comprehensive income’ reduces the amount accumulated in equity under the asset revaluation surplus. Revaluation increases and revaluation decreases relating to individual assets within a class of property, plant and equipment are offset against one another within that class but are not offset in respect of assets in different classes. The asset revaluation surplus is not transferred to accumulated funds on derecognition of the relevant asset.

Intangible assets Intangible assets are initially recognised at cost. Subsequently, intangible assets with finite useful lives are carried at cost less accumulated depreciation/amortisation and accumulated impairment losses. Costs incurred subsequent to initial acquisition are capitalised when it is expected that additional future economic benefits will flow to the Institute.

When recognition criteria AASB 138 Intangible Assets are met, internally generated intangible assets are recognised and measured at cost less accumulated depreciation/amortisation and impairment. Expenditure on research activities is recognised as an expense in the period in which It is incurred. An internally-generated intangible asset arising from development (or from the development phase of an internal project) is recognised if, and only if, all of the following are demonstrated:

(a) the technical feasibility of completing the intangible asset so that it will be available for use or sale; (b) the intention to complete the intangible asset and use or sell it; (c) the ability to use or sell the asset; (d) the intangible asset will generate probable future economic benefits; (e) the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and (f) the ability to measure reliably the expenditure attributable to the intangible asset during its development. Where no internally-generated intangible asset can be recognised, development expenditure is recognised as an expense in the period as incurred. Prepayments Prepayments represent payments in advance of receipt of goods and services or that part of expenditure made in one accounting period covering a term extending beyond that period.

58 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 1 Summary of significant accounting policies

1.15 Liabilities Payables Payables consist of: • contractual payables, such as accounts payable, and unearned income including deferred income from concession arrangements. Accounts payable represent liabilities for goods and services provided to the Institute prior to the end of the financial year that are unpaid, and arise when the Institute becomes obliged to make future payments in respect of the purchase of those goods and services; and • statutory payables, such Contractual payables are classified as financial instruments and categorised as financial liabilities at amortised cost. Statutory payables are recognised and measured similarly to contractual payables, but are not classified as financial instruments and not included in the category of financial liabilities at amortised cost, because they do not arise from a contract.

Provisions Provisions are recognised when the Institute has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

Employee benefits Provision is made for benefits accruing to employees in respect of wages and salaries, annual leave and long service leave for services rendered to the reporting date.

(i) Wages and salaries, and annual leave Liabilities for wages and salaries, including non-monetary benefits annual leave, is recognised in the provision for employee benefits as 'current liabilities', because the Institute does not have an unconditional right to defer settlements of these liabilities. Depending on the expectation of the timing of settlement, liabilities for wages and salaries, annual leave are measured at: • undiscounted value - if the Institute expects to wholly settle within 12 months; or • present vale - if the Institute does not expect to wholly settle within 12 months. (ii) Long service leave Liability for long service leave (LSL) is recognised in the provision for employee benefits. Unconditional LSL is disclosed in the notes to the financial statements as a current liability, even where the Institute does not expect to settle the liability within 12 months because it will not have the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months. The components of the current LSL liability are measured at : • nominal value (undiscounted value) - component that is expected to be wholly settled within 12 months; and • present value (discounted value) - component that is not expected to be wholly settled within 12 months. Conditional LSL is disclosed as non-current liability. There is an unconditional right to defer the settlement of the entitlement until the employee has completed the requisite years of service. This non-current LSL liability is measured at present value. Any gain or loss following revaluation of the present value of non-current LSL liability is recognised as a transaction, except to the extent that a gain or loss arises due to changes in bond interest for which it is then recognised as an other economic flow. (iii) Termination benefits Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee decides to accept an offer of benefits in exchange for termination of employment. The Institute recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after balance sheet date are discounted to present value.

Employee benefits on-costs Provision for on-costs such as payroll tax, workers compensation and superannuation are recognised separately from the provision of employee benefits. Performance Payments Performance payments for the Institute's Executive Officers are based on a percentage of the annual salary package provided under the contract of employment. A liability is provided for under the term of the contracts at reporting date and paid out in the next financial year. Borrowings Borrowings are initially measured at fair value, being the cost of the interest bearing liabilities, net of transaction costs. The measurement basis subsequent to initial recognition depends on whether the Institute has categorised its interest-bearing liabilities as either financial liabilities designated at fair value through the profit and loss, or financial liabilities at amortised cost. Any difference between the initial recognised amount and the redemption value is recognised in net result over the period of the borrowing using the effective interest method.

The classification depends on the nature and purpose of the interest bearing liabilities. The Institute determines the classification of its interest bearing liabilities at initial recognition. Financial liabilities Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost using the effective interest rate method. Derecognition of financial liabilities A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires. 1.16 Commitments Commitments for future expenditure include operating and capital commitments arising from contracts. These commitments are disclosed by way of note at their nominal value and inclusive of the GST payable. In addition, where it is considered appropriate and provides additional relevant information to users, the net present values of significant individual projects are stated. These future expenditures cease to be disclose as commitments once the related liabilities are recognised on the balance sheet.

1.17 Contingent assets and contingent liabilities Contingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed by way of a note (refer to Note 16) and, if quantifiable, are measured at nominal value. Contingent assets and liabilities are presented inclusive of the GST receivable or payable respectively. 1.18 Equity Contributed capital Funding that are in the nature of contributions by the Victorian State government are treated as contributed capital when designated in accordance with UIG Interpretation 1038 Contribution by Owners Made to Wholly-Owned Public Sector Entities . Commonwealth capital funds are not affected and are treated as income. Transfers of net assets arising from administrative restructurings are treated as distributions to or contributions by owners. 1.19 Materiality In accordance with Accounting Standard AASB 108 Accounting Policies, Changes in Accounting Estimates and Error , when an Australian Accounting Standard specifically applies to a transaction, other event or condition, the accounting policies applied to that item shall be determined by applying the Standard, unless the effect of applying them is immaterial. Accounting policies will be considered material if their omission or misstatement could, either individually or collectively, influence the economic decisions that users make on the basis of the financial statements. Materiality depends on the size and nature of the omission or misstatement judged in the surrounding circumstances. 1.20 Rounding of amounts Amounts in the financial report have been rounded to the nearest thousand dollars, unless otherwise stated. 1.21 Comparative information When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year. 1.22 Change in accounting policy Subsequent to the 2015 reporting period, the following new and revised accounting standards have been adopted in the current period with their financial impact detailed as below. • AASB 2015-7 Amendments to Australian Accounting Standards - Fair Value AASB 2015-7 Amendments to Australian Accounting Standards - Fair Value Disclosure of Not-for-Profit Public Sector Entities: The Minister for Finance has approved the early adoption of AASB 2015-7. This enables Victorian not-for-profit public sector entities to benefit from some limited scope exemptions in relation to the fair value disclosure for the 2016 reporting period. The Institute has chosen to apply this early adoption. For fair value measurements that have been categorised within Level 3 of the fair value hierarchy, the Institute is no longer required to provide quantitative information about the ‘significant unobservable inputs’ used in determining the fair value measurement.

59 Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 1 Summary of significant accounting policies

1.23 New and revised AASBs in issue but not yet effective Certain new accounting standards and interpretations have been published that are not mandatory for the 31 December 2016 reporting period. As at 31 December 2016 the following standards and interpretations (applicable to the Institute) had been issued but were not mandatory for financial year ending 31 December 2016. The Institute has not, and does not intend to, adopt these standards early.

Applicable for annual Standard/Interpretation Summary reporting Impact on public sector entity financial statements periods beginning on

The assessment has identified that the financial impact of available for sale (AFS) assets will now be reported through other comprehensive income (OCI) and no longer The key changes include the simplified recycled to the profit and loss. requirements for the classification and measurement of financial assets, a new AASB 9 Financial hedging accounting model and a revised 1-Jan-18 Instruments impairment loss model to recognise impairment losses earlier, as opposed to the current approach that recognises impairment only when incurred.

While the preliminary assessment has not identified any material impact arising from AASB 9, it will continue to be monitored and assessed.

The assessment has indicated that as most operating leases will come on balance sheet, recognition of lease assets and lease liabilities will cause net debt to increase. Depreciation of lease assets and interest on lease liabilities will be recognised in the income statement with The key changes introduced by AASB 16 marginal impact on the operating surplus. include the recognition of most operating AASB 16 Leases 1-Jan-19 The amounts of cash paid for the principal portion of the leases (which are currently not recognised) on lease liability will be presented within financing activities balance sheet. and the amounts paid for the interest portion will be presented within operating activities in the cash flow statement. No change for lessors.

The changes in revenue recognition requirements in AASB 15 may result in changes to the timing and amount of 1-Jan-19 revenue recorded in the financial statements. The Standard will also require additional disclosures on service revenue and contract modifications.

AASB 15 Revenue from Contracts with Customers A potential impact will be the upfront recognition of The core principle of AASB 15 requires an revenue from licenses that cover multiple reporting entity to recognise revenue when the entity periods. Revenue that was deferred and amortised over a satisfies a performance obligation by period may now need to be recognised immediately as a transferring a promised good or service to a transitional adjustment against the opening returned customer. earnings if there are no former performance obligations outstanding.

60 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 1 Summary of significant accounting policies

AASB 1056 replaces AAS 25 Financial Reporting by Superannuation Plans . The standard was developed in light of changes in recent years, developments in the superannuation industry and Australia’s adoption of IFRS.

Some of the key changes in AASB 1056 include:

• the level of integration between AASB 1056 and other AASB standards The assessment has indicated that there will be no impact AASB 1056 1-Jul-16 on the entity, as the Accounting Standard only affects Superannuation Entities # • a revised definition of a superannuation entity superannuation entities' own reporting.

• revised and consistent content for the financial statements

• use of fair value rather than net market value for measuring assets and liabilities

• revised member liability recognition and measurement requirements

• revised disclosure principles

‑ Amends various AASs to reflect the AASB's decision to defer the mandatory application AASB 2014 1 Amendments date of AASB 9 to annual reporting periods This amending standard will defer the application period to Australian Accounting beginning on or after 1 January 2018 as a 1-Jan-18 of AASB 9 to the 2018-19 reporting period in accordance Standards [Part E Financial consequence of Chapter 6 Hedge Accounting, with the transition requirements. Instruments] and to amend reduced disclosure requirements.

AASB 2015-10 amends AASB 10 Consolidated Financial Statements and AASB 128 Investments in Associates to ensure consistent treatment in dealing with the sale or ‑ contribution of assets between an investor and its associate or joint venture. The amendments AASB 2014 10 require that: Amendments to Australian Accounting Standards – • a full gain or loss to be recognised by the The assessment has indicated that there is limited impact, Sale or Contribution of investor when a transaction involves a business 1-Jan-18 as the revisions to AASB 10 and AASB 128 are guidance in Assets between an Investor (whether it is housed in a subsidiary or not); nature. and its Associate or Joint and Venture [AASB 10 & AASB 128]

• a partial gain or loss to be recognised by the parent when a transaction involves assets that do not constitute a business, even if these assets are housed in a subsidiary.

61 Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 1 Summary of significant accounting policies

AASB 2015 6 Amendments to Australian Accounting The Amendments extend the scope of AASB Standards – Extending 124 Related Party Disclosures to not-for-profit The amending standard will result in extended disclosures Related Party Disclosures public sector entities. A guidance has been 1-Jul-16 on the entity's key management personnel (KMP), and to Not-for-Profit Public included to assist the application of the the related party transactions. Sector Entities Standard by not-for-profit public sector [AASB 10, AASB 124 & entities. AASB 1049]

AASB 2016 -4 The assessment has indicated that there is minimal Amendments to The standard amends AASB 136 Impairment impact. Given the specialised nature and restrictions of Australian Accounting of Assets to remove references to using public sector assets, the existing use is presumed to be Standards – Recoverable depreciated replacement cost (DRC) as a 1-Jan-17 the highest and best use (HBU), hence current Amount of NonCash- measure of value in use for not-for-profit replacement cost under AASB 13 Fair Value Generating entities. Measurement is the same as the depreciated Specialised Assets of replacement cost concept under AASB 136. Not-for-Profit Entities

In addition to the new standards above, the AASB has issued a list of amending standards that are not effective for the 2016 reporting period (as listed below). In general, these amending standards include editorial and references changes that are expected to have insignificant impacts on public sector reporting. The AASB Interpretation in the list below is also not effective for the 2016 reporting period and is considered to have insignificant impacts on public sector reporting.

• AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010). • AASB 2013-9 Amendments to Australian Accounting Standards – Conceptual Framework, Materiality and Financial Instruments • AASB 2014 7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2015) • AASB 2014 8 Amendments to Australian Accounting Standards arising from AASB 9 (December 2015) – Application of AASB 9 (December 2009) and AASB 9 (December 2010) [AASB 9 (2009 & 2010)] • AASB 2015 2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101 [AASB 7, AASB 101, AASB 134 & AASB 1049] • AASB 2015 3 Amendments to Australian Accounting Standards arising from the Withdrawal of AASB 1031 Materiality • AASB 2015 5 Amendments to Australian Accounting Standards – Investment Entities: Applying the Consolidation Exception [AASB 10, AASB 12, AASB 128] # • AASB 2016-1 Amendments to Australian Accounting Standards – Recognition of Deferred Tax Assets for Unrealised Losses [AASB 112] • AASB 2016 -2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 107 • AASB 2016 -3 Amendments to Australian Accounting Standards – Clarifications to AASB 15 • AASB 2016-5 Amendments to Australian Accounting Standards - Classification and Measurement of Share-based Payment Transactions [AASB 2]

Note: # This Standard or Amendment may not be relevant to Victorian not-for-profit entities when operative.

62 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 2 Income from transactions

Consolidated Institute 2016 2015 2016 2015 2 Income from transactions $'000 $'000 $'000 $'000 (a) Grants and other transfers (other than contributions by owners)

(i) Government contributions - operating State government - contestable 12,692 11,480 12,692 11,480 Other contributions by State Government 4,582 10,398 4,582 10,398 Total government contributions - operating 17,274 21,878 17,274 21,878

(ii) Government contributions - capital State capital 2,170 5,420 2,170 5,420 Total government contributions - capital 2,170 5,420 2,170 5,420 Total government contributions 19,444 27,298 19,444 27,298

(b) Sales of goods and services Student fees and charges 4,335 5,281 4,335 5,279 Rendering of services Fee for service - Government 310 383 310 383 Fee for service - International operations - onshore 717 823 717 823 Fee for service - other 1,613 1,335 72 151 Total rendering of services 2,640 2,541 1,099 1,357

Other non-course fees and charges Sale of goods 921 1,613 921 1,608 Total other fees and charges 921 1,613 921 1,608 Total revenue from sale of goods and services 7,896 9,434 6,355 8,244

(c) Interest Interest from financial assets not at fair value through P/L: Interest on bank deposits 102 111 99 108 Total interest from financial assets not at fair value through P/L 102 111 99 108

Net interest income 102 111 99 108

(d) Other income Donations, bequests and contributions 49 4 48 2 Other revenue 504 38 445 22 Total other income 553 42 4 93 24

63 Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 3 Expenses from transactions

Consolidated Institute 2016 2015 2016 2015 3 Expenses from transactions $'000 $'000 $'000 $'000 (a) Employee expenses Salaries, wages, overtime and allowances 15,182 15,389 14,080 14,391 Superannuation 1,570 1,536 1,448 1,535 Payroll tax 746 722 746 722 Worker's compensation 104 145 104 145 Long service leave 370 283 352 283 Annual leave 196 (37) 179 (33) Other 97 68 97 68 Total employee expenses 18,265 18,106 17,006 17,111

(b) Depreciation and amortisation Depreciation of non-current assets Buildings 716 627 699 613 Plant and equipment 481 508 473 504 Motor vehicles 138 130 138 130 Library collections 16 19 16 19 Total depreciation 1,351 1,284 1,326 1,266

Amortisation of non-current physical and intangible assets Software 412 428 412 428 Total amortisation 412 428 412 428 Total depreciation and amortisation 1,763 1,712 1,738 1,694

(c) Supplies and services Purchase of supplies and consumables 1,021 977 947 916 Communication expenses 291 632 289 632 Contract and other services 1,070 4,249 1,065 4,245 Cost of goods sold/distributed (ancillary trading) 382 388 381 388 Building repairs and maintenance 1,152 1,024 1,083 954 Minor equipment 848 359 846 354 Fees and charges 1,350 700 1,349 697 Total supplies and services 6,114 8,329 5,960 8,186

(d) Other operating expenses General expenses Marketing and promotional expenses 347 344 340 344 Occupancy expenses 695 698 685 687 Audit fees and services 49 118 45 114 Staff development 217 213 215 210 Travel and motor vehicle expenses 358 488 358 488 Motor vehicle taxes 53 28 53 28 Other expenses 120 395 109 385 Total other expenses 1,839 2,284 1,805 2,256

64 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 4 Other economic flows included in net result

Consolidated Institute 2016 2015 2016 2015 4 Other economic flows included in net result $'000 $'000 $'000 $'000 (a) Net gain/(loss) on non-financial assets (including PPE and intangible assets) Net loss on disposal of property plant and equipment (20) (37) (20) (37) Total net gain/(loss) on non-financial assets (20) (37) (20) (37)

(b) Net gain/(loss) on financial instruments Loans and receivables 149 (55) 149 (55) Total net gain/(loss) on financial instruments 149 (55) 149 (55)

(c) Other gains/(losses) from other economic flows Net gain/(loss) arising from revaluation of long service leave liability 180 (122) 170 (110) Total other gains/(losses) from other economic flows 180 (122) 170 (110)

65 Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 5 Receivables

Consolidated Institute 2016 2015 2016 2015 5 Receivables $'000 $'000 $'000 $'000 Current receivables Contractual Sale of goods and services 887 745 883 741 Provision for doubtful contractual receivables (See also Note 5(a) below) (24) (15) (23) (14) Related parties - Skills Victoria 452 777 452 777 Related parties - TAFE Kids - - 125 95 Other receivables 569 - 569 - Total contractual 1,884 1,507 2,006 1,599

Statutory GST Input tax credit recoverable 112 227 112 221 Total statutory 112 227 112 221 Total current receivables 1,996 1,734 2,118 1,820

Total receivables 1,996 1,734 2,118 1,820

1 The average credit period for sales of goods and services and for other receivables is 30 days. A provision has been made for estimated non-recoverable amounts from the sale of goods determined by reference to past default experience

2 Ageing analysis of contractual receivables Please refer to Note 20(ii) for the ageing analysis of contractual receivables

3 Nature and extent of risk arising from contractual receivables Please refer to Note 20(ii) for the nature and extent of credit risk arising from contractual receivables.

Consolidated Institute 2016 2015 2016 2015 (a) Movement in the provision for doubtful contractual receivables $'000 $'000 $'000 $'000 Balance at beginning of the year 15 55 14 55 Bad debts recovered during the year (11) (13) (12) (11) Increase in provision recognised in the net result 48 28 48 25 Bad debts written off during the year (28) (55) (27) (55) Balance at end of the year 24 15 23 14

66 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 6 Investments and other financial assets

Consolidated Institute 2016 2015 2016 2015 6 Investments and other financial assets $'000 $'000 $'000 $'000 Current investments and other financial assets

Term deposits: Australian dollar term deposits 109 106 38 34 Total term deposits 109 106 38 34 Total current investments and other financial assets 109 106 38 34

Total investments and other financial assets 109 176 38 34

67 Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 7 Inventories

Consolidated Institute 2016 2015 2016 2015 7 Inventories $'000 $'000 $'000 $'000 Current List type of inventories held Supplies and consumables - at cost 50 68 50 68 Bungalows and SuniPODs 40 40 40 40 Total current inventories 90 108 90 108

68 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 8 Property, plant and equipment In accordance with government purpose classifications, the Institute's property, plant and equipment are assets used for the purpose of education. Property, plant & equipment includes all operational assets.

Land at fair Buildings Assets under Plant and Motor Vehicles Cultural Library Total value construction equipment Assets

(a) Consolidated $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 At 1 January 2015 Cost - 850 77 3,486 696 - 76 5,185 Valuation 4,728 25,388 - 8,936 839 93 728 40,712 Accumulated depreciation - (1,267) - (8,532) (901) - (719) (11,419) Net book amount 4,728 24,971 77 3,890 634 93 85 34,478

Year ended 31 December 2015 Opening net book amount 4,728 24,971 77 3,890 634 93 85 34,478 Additions - - 2,715 41 201 - - 2,957 Disposals - (59) - - (110) - - (169) Transfer into/(out of) assets under construction - 310 (355) 45 - - - (0) Depreciation - (627) - (508) (130) - (19) (1,283) Closing net book amount 4,728 24,595 2,437 3,468 595 93 66 35,983

At 31 December 2015 Cost - 1,097 2,437 3,572 707 - 76 7,889 Valuation 4,728 25,388 - 8,936 839 93 728 40,712 Accumulated depreciation - (1,890) - (9,040) (951) - (738) (12,619) Net book amount 4,728 24,595 2,437 3,468 595 93 66 35,982

Year ended 31 December 2016 Opening net book amount 4,728 24,595 2,437 3,468 595 93 66 35,982 Additions - 36 3,647 244 386 - 23 4,336 Disposals - (13) - (78) (118) - - (209) Transfer into/(out of) assets under construction - 6,036 (6,036) - - - - - Revaluation of Buildings - 3,127 - - - - - 3,127 Depreciation - (716) - (481) (138) - (16) (1,351) Closing net book amount 4,728 33,065 48 3,153 725 93 73 41,885

At 31 December 2016 Cost - - 48 3,257 881 - 99 4,285 Valuation 4,728 33,105 - 8,936 839 93 728 48,429 Accumulated depreciation - (40) - (9,040) (995) - (754) (10,829) Net book value at the end of the financial year 4,728 33,065 48 3,153 725 93 73 41,885

Land at fair Buildings Assets under Plant and Motor Vehicles Cultural Library Total value construction equipment Assets

(b) Institute $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 At 1 January 2015 Cost - 850 47 3,465 696 - 76 5,134 Valuation 4,728 24,946 - 8,910 839 93 727 40,243 Accumulated depreciation - (1,245) - (8,515) (901) - (718) (11,379) Net book amount 4,728 24,551 47 3,860 634 93 85 33,998

Year ended 31 December 2015 Opening net book amount 4,728 24,551 47 3,860 634 93 85 33,998 Additions - - 2,390 35 203 - - 2,628 Disposals - (59) - - (110) - - (169) Transfer into/(out of) assets under construction ------Depreciation - (613) - (504) (130) - (19) (1,266) Closing net book amount 4,728 23,879 2,437 3,391 597 93 66 35,191

At 31 December 2015 Cost - 787 2,437 3,500 709 - 76 7,509 Valuation 4,728 24,946 - 8,910 839 93 727 40,243 Accumulated depreciation - (1,854) - (9,019) (951) - (737) (12,561) Net book amount 4,728 23,879 2,437 3,391 597 93 66 35,191

Year ended 31 December 2016 Opening net book amount 4,728 23,879 2,437 3,391 597 93 66 35,191 Additions - 36 3,627 247 384 - 23 4,317 Disposals - (13) - (78) (118) - - (209) Transfer into/(out of) assets under construction - 6,016 (6,016) - - - - - Revaluation of Buildings - 3,127 - - - - - 3,127 Depreciation - (699) - (473) (138) - (16) (1,326) Closing net book amount 4,728 32,346 48 3,087 725 93 73 41,100

At 31 December 2016 Cost - - 48 3,188 882 - 99 4,217 Valuation 4,728 32,346 - 8,910 839 93 727 47,643 Accumulated depreciation - - - (9,011) (996) - (753) (10,760) Net book value at the end of the financial year 4,728 32,346 48 3,087 725 93 73 41,100

69 Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 8 Property, plant and equipment In accordance with government purpose classifications, the Institute's property, plant and equipment are assets used for the purpose of education. Property, plant & equipment includes all operational assets.

- -

(c) Fair value measurement hierarchy for assets Fair value measurement hierarchy for assets as at Fair value measurement hierarchy for assets as at 31 December 2016 31 December 2015 Fair value hierarchy Fair value hierarchy Carrying Carrying amount as at Level 1 Level 2 Level 3 amount as at Level 1 Level 2 Level 3 Quoted Observable Un-observable Quoted Observable Un-observable Classified in accordance with the fair value hierarchy, see Note 1 31 Dec 2016 31 Dec 2015 Prices Price Inputs Inputs Prices Price Inputs Inputs $’000 $‘000 $‘000 $‘000 $’000 $‘000 $‘000 $‘000 Land at fair value: Non specialised land 600 - 600 - 600 - 600 - Specialised land 4,128 - - 4,128 4,128 - - 4,128 Total of land at fair value 4,728 - 600 4,128 4,728 - 600 4,128 Buildings at fair value: Non specialised buildings ------Specialised buildings 33,065 - - 33,065 24,595 - - 24,595 Heritage assets ------Total of buildings at fair value 33,065 - - 33,065 24,595 - - 24,595 Plant, equipment and vehicles at fair value: Vehicles 725 - - 725 595 - - 595 Plant and equipment 3,153 - - 3,153 3,468 - - 3,468 Total of plant, equipment and vehicles at fair value 3,878 - - 3,878 4,063 - - 4,063 Cultural assets at fair value: Artworks 93 - - 93 93 - - 93 Total of Cultural assets at fair value 93 - - 93 93 - - 93 Library assets at fair value: Library collections 73 - - 73 66 - - 66 Total of Library assets at fair value 73 - - 73 66 - - 66 Transfers between fair value hierarchy levels during the year There were no transfers between Levels during the year. (d) Valuations of Property, Plant and Equipment

Fair value assessments have been performed at 31 December 2016 for motor vehicles, plant & equipment and library collections. This assessment demonstrated that fair value was materially similar to carrying value, and therefore a full revaluation was not required this year.

The fair value of the building asset class as indicated by the compounded impact of the Valuer General Victoria indices since the last revaluation was material, greater than 10%, a managerial revaluation was completed. An adjustment of $3.1M was made to the carrying value of the building asset class to reflect the fair value as at the end of the reporting period. The next scheduled full revaluation for this purpose Institute will be conducted in 2017. Vehicles Vehicles are valued using the depreciated replacement cost method. The Institute acquires new vehicles and at times disposes of them before the end of their economic life. The process of acquisition, use and disposal in the market is managed by experienced fleet managers in the Institute who set relevant depreciation rates during use to reflect the utilisation of the vehicles. Plant and equipment Plant and equipment is held at fair value. When plant and equipment is specialised in use, such that it is rarely sold other than as part of a going concern, fair value is determined using the depreciated replacement cost method.

Non specialised land, non specialised buildings and artworks Non specialised land, non specialised buildings and artworks are valued using the market approach. Under this valuation method, the assets are compared to recent comparable sales or sales of comparable assets which are considered to have nominal or no added improvement value.

For non specialised land and non specialised buildings, an independent valuation was performed by independent valuers Eishold Property Real Estate Consultant's on behalf of the Valuer General Victoria to determine the fair value using the market approach. Valuation of the assets was determined by analysing comparable sales and allowing for share, size, topography, location and other relevant factors specific to the asset being valued. From the sales analysed, an appropriate rate per square metre has been applied to the subject asset. The effective date of the valuation is 31 December 2012.

For artwork, valuation of the assets is determined by a comparison to similar examples of the artists work in existence throughout Australia and research on prices paid for similar examples offered at auction or through art galleries in recent years. No revaluation was performed for artwork for the financial period ending at 31 December 2016.

To the extent that non specialised land, non specialised buildings and artworks do not contain significant, unobservable adjustments, these assets are classified as Level 2 under the market approach.

Specialised land and specialised buildings The market approach is also used for specialised land, although is adjusted for the community service obligation (CSO) to reflect the specialised nature of the land being valued.

The CSO adjustment is a reflection of the valuer’s assessment of the impact of restrictions associated with an asset to the extent that is also equally applicable to market participants. This approach is in light of the highest and best use consideration required for fair value measurement, and takes into account the use of the asset that is physically possible, legally permissible, and financially feasible. As adjustments of CSO are considered as significant unobservable inputs, specialised land would be classified as Level 3 assets.

For the Institute’s majority of specialised buildings, the depreciated replacement cost method is used, adjusting for the associated depreciations. As depreciation adjustments are considered as significant, unobservable inputs in nature, specialised buildings are classified as Level 3 fair value measurements.

An independent valuation of the Institute's specialised land and specialised buildings was performed by the Valuer General Victoria. The valuation was performed using the market approach adjusted for CSO. The effective date of the valuation is 31 December 2012. There were no changes in valuation techniques throughout the period to 31 December 2016. For all assets measured at fair value, the current use is considered the highest and best use.

70 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 8 Property, plant and equipment In accordance with government purpose classifications, the Institute's property, plant and equipment are assets used for the purpose of education. Property, plant & equipment includes all operational assets.

(e) Reconciliation of Level 3 fair value as at 31 December Specialised Non - Plant and Motor Vehicles Cultural Assets Library Total 2016 land Specialised equipment buildings $'000 $'000 $'000 $'000 $'000 $'001 $'000 Opening balance 4,128 24,595 3,468 597 93 66 32,948 Purchases (sales) - 6,059 166 266 - 23 6,514 Depreciations - (716) (481) (138) - (16) (1,350) Revaluation - 3,127 - - - - 3,127 Subtotal 4,128 33,065 3,154 725 93 73 41,238 Closing balance 4,128 33,065 3,154 725 93 73 41,238 Unrealised gains/ (losses) on non financial assets ------

(f) Description of significant unobservable inputs to Level 3 valuations

Sensitivity of fair value measurement to changes in Valuation technique Significant unobservable inputs Range (weighted average) significant unobservable inputs A significant increase or decrease in the CSO Community Service Obligation Specialised land Market approach 50–70% (60%)1 adjustment would result in (CSO) adjustment a significantly lower (higher) fair value A significant increase or decrease in direct cost per 2 $1 000–$1 500 /m ($1 300) square metre adjustment Direct cost per square metre would result in a significantly higher or lower fair value. Specialised buildings Depreciated replacement cost A significant increase or decrease in the estimated Useful life of specialised 40 years useful life of the asset buildings would result in a significantly higher or lower valuation. A significant increase or $3 000–$4 000 per unit decrease in cost per unit ($3 500 per unit) Cost per unit would result in a significantly higher or lower fair value. Plant and equipment Depreciated replacement cost A significant increase or decrease in the estimated 4–10 years (5 years) useful life of the asset Useful life plant and equipment would result in a significantly higher or lower valuation. A significant increase or $9 000–$10 000 per unit decrease in cost per unit ($9 500 per unit) Cost per unit would result in a significantly higher or lower fair value. Motor vehicles Depreciated replacement cost A significant increase or decrease in the estimated 1–5 years (3 years) useful life of the asset Useful life of vehicles would result in a significantly higher or lower valuation.

71 Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 9 Intangible assets

Consolidated Institute Software Total Software Total 9 Intangible Assets $'000 $'000 $'000 $'000 Year ended 31 December 2015 Gross carrying amount Opening balance 4,393 4,393 4,393 4,393 Additions 136 136 136 136 Disposals - - - - Impairment1 - - - - Closing balance 4,529 4,529 4,529 4,529

Accumulated depreciation, amortisation and impairment Opening balance (788) (788) (788) (788) Amortisation of intangible non produced assets (428) (428) (428) (428) Disposals - - - - Impairment1 - - - - Closing balance (1,216) (1,216) (1,216) (1,216) Net book value at end of financial year 3,313 3,313 3,313 3,313

Consolidated Institute Software Total Software Total $'000 $'000 $'000 $'000 Year ended 31 December 2016 Gross carrying amount Opening balance 4,529 4,529 4,529 4,529 Additions 77 77 77 77 Disposals - - - - Impairment1 - - - - Closing balance 4,606 4,606 4,606 4,606

Accumulated depreciation, amortisation and impairment Opening balance (1,216) (1,216) (1,216) (1,216) Amortisation of intangible non produced assets (412) (412) (412) (412) Disposals - - - - Impairment1 - - - - Closing balance (1,628) (1,628) (1,628) (1,628) Net book value at end of financial year 2,978 2,978 2,978 2,978

Notes

1 The consumption of intangible produced assets is included in ‘depreciation’ line item, where the consumption of the intangible non produced assets is included in ‘net gain/(loss) on non financial assets’ line item on the comprehensive operating statement.

72 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 10 Other non-financial assets

Consolidated Institute 2016 2015 2016 2015 10 Other non-financial assets $'000 $'000 $'000 $'000 Current other non-financial assets Prepayments 668 524 668 524 Total current other non-financial assets 668 524 668 524

Total other non-financial assets 668 524 668 524

73 Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

NOTE 11

Note 11 Payables

Consolidated Institute 2016 2015 2016 2015 11 Payables $'000 $'000 $'000 $'000 Current Contractual Supplies and services1 2,405 1,464 2,395 1,414 Revenue in Advance 885 667 864 653 3,290 2,131 3,259 2,067 Statutory GST payable 88 126 88 126 Total current payables 3,378 2,257 3,347 2,193

Total payables 3,378 2,257 3,347 2,193 Notes 1 The average credit period is 30 days. (a) Maturity analysis of contractual payables Please refer to Note 20(iii) for the maturity analysis of contractual payables.

(b) Nature and extent of risk arising from contractual payables Please refer to Note 20(iii) for the nature and extent of risks arising from contractual payables.

74 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 12 Provisions

Consolidated Institute 2016 2015 2016 2015 12 Provisions $'000 $'000 $'000 $'000 Current provisions Employee benefits (Note 12(a))1 Annual leave (Note 12(a)): - - - - Annual Leave Unconditional and expected to wholly settle within 12 months2 446 416 409 385 Long service leave(Note 12(a)): - - - - Long Service Unconditional and expected to wholly settle within 12 months2 241 261 236 254 Unconditional and expected to wholly settle after 12 months2 1,385 1,513 1,352 1,468 2,072 2,190 1,997 2,107 Provisions for on costs (Note 12(a) and Note 12(b)): Unconditional and expected to wholly settle within 12 months2 106 105 101 101 Unconditional and expected to wholly settle after 12 months2 216 234 213 232 322 340 314 333 Total current provisions 2,394 2,529 2,311 2,440

Non-current Employee benefits (Note 12(a))1 368 378 353 363 On costs (Note 12(a) and Note 12(b)) 57 59 56 58 Total non-current provisions 425 437 409 421 Total provisions 2,819 2,966 2,720 2,861

Consolidated Institute 2016 2015 2016 2015 (a) Employee benefits and on costs1 $'000 $'000 $'000 $'000 Current employee benefits Annual leave 446 416 409 385 Long service leave 1,626 1,774 1,588 1,722 2,072 2,190 1,997 2,107 Non current employee benefits Long service leave 368 378 353 363 Total employee benefits 368 378 353 363 Current on costs 322 340 314 333 Non current on costs 57 59 56 58 Total on costs 379 398 370 391

Total employee benefits and on costs 2,819 2,966 2,720 2,861

Notes 1 Employee benefits consist of annual leave and long service leave accrued by employees. On costs such as payroll tax and workers’ compensation insurance are not employee benefits and are recognised as a separate provision. 2 Amounts are measured at present values.

75 Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2015

Note 12 Provisions

$'000 2016 Long Service (b(i)) Movement in provisions - Consolidated Annual Leave On-costs Total Leave Opening balance 416 2,152 398 2,966 Additional provisions recognised 905 212 167 1,284 Reductions arising from payments/other sacrifices of future economic benefits (874) (370) (187) (1,431) Closing balance 447 1,994 378 2,818

Current 447 1,626 322 2,394 Non-current - 368 57 424 447 1,994 378 2,818

$'000 2016 Long Service (b(ii)) Movement in provisions - Institute Annual Leave On-costs Total Leave Opening balance 384 2,084 391 2,859 Additional provisions recognised 880 209 158 1,247 Reductions arising from payments/other sacrifices of future economic benefits (854) (352) (180) (1,386) Closing balance 409 1,941 370 2,720

Current 409 1,588 314 2,311 Non-current - 353 56 409 409 1,941 370 2,720

76 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 13 Borrowings

Consolidated Institute 2016 2015 2016 2015 13 Borrowings $'000 $'000 $'000 $'000 Current Government Loans 209 209 209 209 Total current borrowings 209 209 209 209

Non-current Government Loans 5,660 1,045 5,660 1,045 Total non-current borrowings 5,660 1,045 5,660 1,045 Total borrowings 5,869 1,254 5,869 1,254 These loans are unsecured loans which bear no interest. The term of the loans are generally agreed by the Minister at the time the advance was provided. (a) Maturity analysis at borrowings Please refer to note 20(iii) for the maturity analysis at borrowings.

77 Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 14 Other Liabilities

Consolidated Institute 2016 2015 2016 2015 14 Other Liabilities $'000s $'000s $'000s $'000s Trust account balances relating to Trust Accounts controlled and/or administered by the Institute: Cash and cash equivalents and investments Controlled trusts Dr Alan Antcliff Memorial Trust 38 36 38 36 Total controlled trusts 38 36 38 36 Total cash and cash equivalents and investments 38 36 38 36

Trust accounts opened and closed by the Institute during 2016: There were no trust accounts opened or closed by the Institute during 2016.

78 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 15 Reserves

Consolidated Institute 2016 2015 2016 2015 15 Reserves $'000 $'000 $'000 $'000 (a) Physical asset revaluation surplus1: Balance at 1 January 22,181 22,181 21,969 21,969 Revaluation increments/(decrements) 3,127 - 3,127 - Balance at 31 December 25,308 22,181 25,096 21,969

Net changes in reserves 25,308 22,181 25,096 21,969 Notes 1 The physical assets revaluation surplus arises on the revaluation of land and buildings.

79 Financial Statements for Sunraysia Institute of TAFE

Note 16 Cash flow information for the year ended 31 December 2016 Consolidated Institute 2016 2015 2016 2015 16 Cash flow information $'000 $'000 $'000 $'000 (a) Reconciliation of cash and cash equivalents Total cash and deposits disclosed in the balance sheet 8,311 5,228 7,902 4,964 Balance as per cash flow statement 8,311 5,228 7,902 4,964

Consolidated Institute 2016 2015 2016 2015 (b) Financing facilities $'000 $'000 $'000 $'000

Unsecured bank overdraft facility, reviewed annually and payable at call Credit facilities 100 100 100 100 Amount utilised - - - - Credit card facility 250 250 250 250 Amount utilised 9 - 9 - 359 350 359 350

Consolidated Institute 2016 2015 2016 2015 (c) Reconciliation of net result for the period $'000 $'000 $'000 $'000 Net result for the year 3,450 6,241 3,308 6,225

Non cash movements: (Gain)/loss on sale or disposal of non current assets 20 37 20 37 Depreciation and amortisation of non current assets 1,763 1,712 1,738 1,694 Revaluation of Non Current Assets (3,127) - (3,127) - Net (gain)/loss on financial instruments (149) 55 (149) 55 Movements included in investing and financing activities: Movements in assets and liabilities Decrease / (increase) in trade receivables (271) 826 (307) 843 Decrease / (increase) in inventories 18 30 18 29 Decrease / (increase) in other assets (144) (283) (144) (282) Increase / (decrease) in payables and other liabilities 1,103 (3,121) 1,136 (3,166) Increase / (decrease) in employee benefits (147) 85 (142) 77 Net cash flows from/(used in) operating activities 2,516 5,582 2,351 5,512

80 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 17 Commitments for expenditure

Consolidated Institute 2016 2015 2016 2015 17 Commitments for expenditure $'000 $'000 $'000 $'000 (a) Capital expenditure commitments payable Capital expenditure contracted for at the reporting date but not recognised as liabilities is as follows: Property, Plant and Equipment Payable: Within one year - 6,719 - 6,719 Total Property, Plant and Equipment - 6,719 - 6,719 GST reclaimable on the above - (611) - (611) Net Commitments Property, Plant and Equipment - 6,108 - 6,108

Total capital expenditure commitments - 6,108 - 6,108 (b) Non-cancellable operating lease commitments payable1 Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows: Within one year 357 173 357 173 Later than one year but not later than five years 4 7 4 7 Total minimum lease payments in relation to non-cancellable operating leases 361 180 361 180 GST reclaimable on the above (34) (17) (34) (17) Net Commitments Non-cancellable Operating Leases 327 163 327 163 Total Commitments 327 6,271 327 6,271

81 Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 18 Contingent assets and contingent liabilities

Contingent Liabilities 1 The Institute has given an undertaking to its fully owned subsidary, TAFE Kids Incorporated, to provide financial support to that organisation should the need arise.

82 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 19 Superannuation

Employees of the Institute are entitled to receive superannuation benefits and the Institute contributes to both defined benefit and defined contribution plans. The defined benefit plan(s) provides benefits based on years of service and final average salary.

The Institute does not recognise any defined benefit liability in respect of the plan(s) because the entity has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as they fall due. The Department of Treasury and Finance recognises and discloses the State’s defined benefit liabilities in its financial statements.

However, superannuation contributions paid or payable for the reporting period are included as part of employee benefits in the Statement of Comprehensive Income of the Institute. The name and details of the major employee superannuation funds and contributions made by the Institute are as follows:

Consolidated Institute 2016 2015 2016 2015 19 Superannuation $'000 $'000 $'000 $'000 Paid Contribution for the Year Defined benefit plans : State Superannuation Fund – revised and new 78 78 76 78 Total defined benefit plans 78 78 76 78

Defined contribution plans: VicSuper 815 727 749 683 Other 677 623 623 585 Total defined contribution plans 1,492 1,350 1,372 1,268 Total paid contribution for the year 1,570 1,428 1,448 1,346

1 The Institute does not have any contributions outstanding to the above funds and there have been no loans made from the funds. The bases for contributions are determined by the various schemes. 2 The above amounts were measured as at 31 December of each year, or in the case of employer contributions they relate to the years ended 31 December.

83 Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 20 Financial instruments

(i) Financial risk management objectives and policies The Institute's financial instruments comprise cash assets, term deposits, receivables (excluding statutory receivables) and payables (excluding statutory payables). Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument is disclosed in Note 1 of the financial statements. The Institute's activities expose it to a variety of financial risks: market risk (interest rate risk), credit risk and liquidity risk. Risk management is carried out by a central treasury unit with the Finance function of the Institute under policies approved by the Board. The Treasury Unit identifies, evaluates financial risks in close co-operation with the Institutes’s operating units. The Board provides written principles for overall risk

The carrying amounts of the Institute's contractual financial assets and financial liabilities by category are disclosed below:

Consolidated Institute 2016 2015 2016 2015 Carrying amount of financial instruments by category Note $'000 $'000 $'000 $'000 (a) Loans and receivables Cash and deposits 8,311 5,228 7,902 4,964 Receivables: Receivables 5 863 730 860 727 Receivable from related parties 5 452 777 577 872 Other receivables 5 569 - 569 - Investment and other financial assets: Australian dollar term deposits 6 109 106 38 36 Total loans and receivables 10,304 6,841 9,946 6,599

(b) Financial assets designated at fair value through profit and loss Impairment loss Financial assets - receivables (28) (55) (27) (55) Total financial assets designated at fair value through profit or loss (28) (55) (27) (55)

(c) Financial liabilities at amortised cost: Payables: Supplies and services 11 2,405 1,464 2,395 1,414 Borrowings: Government Loans 13 5,869 1,254 5,869 1,254 Total financial liabilities at amortised cost 8,274 2,718 8,264 2,668 Total financial liabilities 8,274 2,718 8,264 2,668

(d) Financial liabilities designated at fair value through profit and loss Financial liabilities - loans 176 - 176 - Total financial liabilities designated at fair value through profit or loss 176 - 176 -

84 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 20 Financial instruments (continued)

(ii) Credit risk

Credit risk arises from the contractual financial assets of the Institute, which comprise cash and deposits, non-statutory receivables. The Institute’s exposure to credit risk arises from the potential default of a counter party on their contractual obligations resulting in financial loss to the Institute.

Credit risk is measured at fair value and is monitored on a regular basis by the finance committee. The finance committee monitors credit risk by actively assessing the rating quality and liquidity of counterparties. The Institute does not have any material credit risk exposure to any single receivable or group of receivables under financial instruments entered into by the Institute. The trade receivables balance at 31 December 2016 and 31 December 2015 do not include any counterparties with external credit ratings. Customers are assessed for credit worthiness using the criteria detailed above. The Institute minimises credit risk in relation to student loans receivable in the following ways: - Employed a Credit Manager to follow up on debts In addition, the Institute does not engage in hedging for its contractual financial assets and mainly obtains contractual financial assets that are on fixed interest, except for cash assets, which are mainly cash at bank. The Institute’s policy is to only deal with banks with high credit ratings. Provision of impairment for contractual financial assets is recognised when there is objective evidence that the Institute will not be able to collect a receivable. Objective evidence includes financial difficulties of the debtor, default payments, debts which are more than 90 days overdue, and changes in debtor credit ratings. The carrying amount of contractual financial assets recorded in the financial statements, net of any allowances for losses, represents the Institute’s maximum exposure to credit risk without taking account of the value of any collateral obtained. There are no material financial assets which are individually determined to be impaired. Currently the Institute does not hold any collateral as security nor credit enhancements relating to any of its financial assets.

There has been no significant change in the Institute's exposure, or its objectives, policies and processes for managing credit risk or the methods used to measure this risk from the previous reporting period.

Credit quality of contractual financial assets that are neither past due nor impaired 1

Financial Government Other institutions agencies counter- Total (AA2 rating) (AAA rating) party 2016 $'000 $'000 $'000 $'000 Cash and deposits 8,311 - - 8,311 Receivable from related parties - 452 1,432 1,884 Australian dollar term deposits 109 - - 109 Total contractual financial assets 2016 8,420 452 1,432 10,304 2015 Cash and deposits 5,228 - - 5,228 Receivable from related parties - 777 730 1,508 Australian dollar term deposits 106 - - 106 Total contractual financial assets 2015 5,334 777 730 6,841 Note

Ageing analysis of financial assets 1. There are no financial assets that have had their terms renegotiated so as to prevent them from being past due or impaired, and they are stated at the carrying amounts as indicated. The following table discloses the ageing analysis for the Institute's financial assets.

85 Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 20 Financial instruments (continued)

(ii) Credit risk (Continued)

Past due but not impaired Not past Impaired Carrying due and not financial amount Less than 13 3 months 1 5 impaired 1 month months – 1 year years assets $'000 $'000 $'000 $'000 $'000 $'000 $'000 2016 Financial assets Receivables1: Receivables 836 676 133 44 29 - ( 24) Receivable from related parties 452 452 - - - - - Other receivables 569 569 - - - - - Investment and other financial assets: Australian dollar term deposits 109 109 - - - - - Total 2016 financial assets 1,966 1,806 133 44 29 - (24)

2015 Financial assets Receivables1: Receivables 745 568 112 37 29 - ( 15) Receivable from related parties 777 777 - - - - - Investment and other financial assets: Australian dollar term deposits 106 106 - - - - - Total 2015 financial assets 1,628 1,451 112 37 29 - (15) Note 1 Receivables and payables disclosed here exclude statutory receivables and statutory payables (e.g. amounts owing to/from Victorian Government, GST input tax credit recoverable and taxes payable).

86 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 20 Financial instruments (continued)

(iii) Liquidity risk Liquidity risk is the risk that the Institute would be unable to meet its financial obligations as and when they fall due. The Institute operates under payments policy of settling financial obligations within 30 days and in the event of a dispute, making payments within 30 days from the date of resolution.

Ultimate responsibility for liquidity risk management rests with the institute's governing body, which has built an appropriate liquidity risk management framework for the management of the short, medium and long-term funding and liquidity requirements. The institute manages liquidity risk by maintaining adequate reserves and banking facilities by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. The Institute has also established a standby facility of $100,000 to provide short-term cash, if required. There has been no significant change in the Institute's exposure, or its objectives, policies and processes for managing liquidity risk or the methods used to measure this risk from the previous reporting period.

Maturity analysis of financial liabilities

The following table discloses the contractual maturity analysis for the Institute's financial liabilities.

Maturity dates Carrying Nominal amount amount Less than 13 3 months 1 5 5+ 1 month months – 1 year years years $'000 $'000 $'000 $'000 $'000 $'000 $'000 2016 Financial liabilities Payables: Supplies and services 2,405 2,405 204 2,201 1 - - Borrowings: Government Loans 5,869 6,045 - - 209 5,660 Total 2016 financial liabilities 8,274 8,450 204 2,201 210 5,660 -

2015 Financial liabilities Payables: Supplies and services 1,464 1,464 124 1,340 - - - Borrowings: Government Loans 1,254 1,254 - - 209 1,045 - Total 2015 financial liabilities 2,718 2,718 124 1,340 209 1,045 - Note Receivables and payables disclosed here exclude statutory receivables and statutory payables (e.g. amounts owing to/from Victorian Government, GST input tax credit recoverable and taxes payable).

87 Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 20 Financial instruments (continued)

(iv)Market risk The Institute in its daily operations is exposed to a number of market risks. Market risks relate to the risk that market rates and prices will change and that this will have an adverse affect on the operating result and/or net worth of the Institute. e.g. an adverse movement in interest rates or foreign currency exchange rates.

The Institute’s exposures to market risk are primarily through foreign currency risk, interest rate risk and equity price risk. Objectives, policies and processes used to manage each of these risks are disclosed below.

The Board ensures that all market risk exposure is consistent with the Institute's business strategy and within the risk tolerance of the Institute. Regular risk reports are presented to the Board.

There has been no significant change in the Institute's exposure, or its objectives, policies and processes for managing market risk or the methods used to measure this risk from the previous reporting period. Interest rate risk Interest rate risk arises from the potential for a change in interest rates to change the expected net interest earnings in the current reporting period and in future years, or cause a fluctuation in the fair value of the financial instruments. Fair value interest rate risk is the risk that the fair value of a financial instrument will fluctuate because of changes in market interest rates. The Institute does not hold any interest bearing financial instruments that are measured at fair value, and therefore has no exposure to fair value interest rate risk. Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Institute has minimal exposure to cash flow interest rate risk through its cash and deposits that are at floating rate.

There has been no significant change in the Institute's exposure, or its objectives, policies and processes for managing interest rate risk or the methods used to measure this risk from the previous reporting period. Interest rate movements have not been sufficiently significant during the year to have an impact on the Institute's year end result. The Institute's exposure to interest rate risks and the effective interest rates of financial assets and financial liabilities are set out in the financial instrument composition and maturity analysis table below.

Financial instrument composition and interest rate exposure Interest rate exposure Weighted Total Carrying Floating Fixed Non- average Amount per interest interest Interest effective rate Balance Sheet Consolidated rate rate Bearing 2016 % $'000 $'000 $'000 $'000 Financial assets Cash and deposits 1.66 8,311 8,311 - - Receivables: Receivables - 863 - - 863 Receivable from related parties - 452 - - 452 Other receivables - 569 - - 569 Investment and other financial assets: Australian dollar term deposits 2.43 109 109 - Total financial assets 10,304 8,420 - 1,884 Financial liabilities Payables: Supplies and services - 2,405 - - 2,405 Borrowings: Government Loans - 5,869 - - 5,869 Total financial liabilities - 8,274 - - 8,274

88 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 20 Financial instruments (continued)

Interest rate exposure Weighted Total Carrying average Amount per Floating Fixed Non- effective rate Balance Sheet interest interest Interest Consolidated rate rate Bearing 2015 % $'000 $'000 $'000 $'000 Financial assets Cash and deposits 2.12 5,228 5,228 - - Receivables: Receivables - 730 - - 730 Receivable from related parties - 777 - - 777 Investment and other financial assets: Australian dollar term deposits 3.82 106 106 - - Total financial assets 6,841 5,334 - 1,508

Financial liabilities Payables: Supplies and services - 1,464 - - 1,464 Borrowings: Government Loans - 1,254 - - 1,254 Total financial liabilities - 2,718 - - 2,718

89 Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 20 Financial instruments (continued)

Sensitivity analysis and assumptions The Institute’s sensitivity to market risk is determined based on the observed range of actual historical data for the preceding five year period, with all variables other than the primary risk variable held constant. The Institute’s fund managers cannot be expected to predict movements in market rates and prices. Sensitivity analyses shown are for illustrative purposes only. The following movements are ‘reasonably possible’ over the next 12 months: • a movement of 50 basis points up and down (2015: 50 basis points up and down) in market interest rates (AUD) The following tables show the impact on the Institute’s net result and equity for each category of financial instrument held by the Institute at the end of the reporting period as presented to key management personnel, if the above

Interest rate risk Carrying -50 basis points +50 basis points amount Consolidated Result Equity Result Equity 31 December 2016 $'000 $'000 $'000 $'000 $'000 Contractual financial assets Cash and deposits 8,311 (42) (42) 42 42 Receivables 1,884 - - - - Australian dollar term deposits 109 (1) (1) 1 1 Total increase/(decrease) in financial assets 10,304 (43) (43) 43 43

Contractual financial liabilities Payables 2,405 - - - - Borrowings 5,869 - - - - Total increase/(decrease) in financial liabilities 8,274 - - - - Total increase/ (decrease) 2,030 (43) (43) 43 43

Interest rate risk Carrying -50 basis points +50 basis points amount Consolidated Result Equity Result Equity 31 December 2015 $'000 $'000 $'000 $'000 $'000 Contractual financial assets Cash and cash equivalents 5,228 (26) (26) 26 26 Receivables 1,508 - - - - Australian dollar term deposits 106 (1) (1) 1 1 Total increase/(decrease) in financial assets 6,842 (28) (28) 28 28

Contractual financial liabilities Payables 1,464 - - - - Borrowings 1,254 - - - - Total increase/(decrease) in financial liabilities 2,718 - - - - Total increase/ (decrease) 4,124 (28) (28) 28 28

90 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 20 Financial instruments (continued)

(vi) Fair value estimation The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes.

Fair values of financial instrument asset and liabilities are determined using the fair value hierarchy that categorises the inputs to valuation techniques used to measure fair value into three levels based on the degree to which the fair value is observable.

• Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities that the Institute can access at the measurement date. • Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). • Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

The Institute considers that the carrying amount of trade receivables and payables is a reasonable approximation of their fair values due to the short-term nature of trade receivables and payables. Due to the short-term nature of the current receivables, their carrying value is assumed to approximate their fair value, and based on credit history it is expected that the receivables that are neither past due nor impaired will be received when due.

For other assets and other liabilities the fair value approximates their carrying value. Financial assets where the carrying amount exceeds fair values have not been written down as the Institute intends to hold these assets to maturity. The carrying amounts and aggregate net fair values of financial assets and liabilities at balance date are:

2016 2015 Carrying Net Fair Carrying Net Fair Amount Value Amount Value $’000 $’000 $’000 $’000 Financial assets Cash and deposits 8,311 8,311 5,228 5,228 Receivables: Receivables 863 863 730 730 Receivable from related parties 452 452 777 777 Other receivables 569 569 - - Investment and other financial assets: Australian dollar term deposits 109 109 106 106 Total financial assets 10,304 10,304 6,841 6,841

Financial liabilities Payables: Supplies and services 2,405 2,405 1,464 1,464 Borrowings: Government Loans 5,869 5,869 1,254 1,254 Total financial liabilities 8,274 8,274 2,718 2,718 Note 1 Receivables and payables disclosed here exclude statutory receivables and statutory payables (e.g. amounts owing to/from Victorian Government, GST input tax credit recoverable and taxes payable).

91 Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 21 Responsible persons and executive officers

In accordance with the Ministerial Directions issued by the Minister for Finance under the Financial Management Act 1994, the following disclosures are made regarding responsible persons and executive officers for the reporting period.

(i) Minister The relevant Minister is The Hon. Gayle Tierney, MLC, Minister for Training and Skills (from 9 November 2016). The Hon. Steve Herbet, MP was the relevant Minister from 1 January 2016 to 9 November 2016. Remuneration of the Minister for Higher Education and Skills is disclosed in the financial report of the Department of Premier and Cabinet. Other relevant interests are declared in the Register of Members interests which is completed by each member of the Parliament.

(ii) Chief executive officer (accountable officer) Ms Win Scott (appointed June 2006, resigned June 2016) Mr Geoff Dea (Appointed June 2016) Remuneration received or receivable by the chief executive officer in connection with the management of the Institute during the reporting period was in the range:

Remuneration received or receivable by the chief executive officer in connection with the management of the Institute during the reporting period was in the range $270 000 - $279 999 (2015: $210 000 - $219 999).

(iii) Members of the board

Remuneration of the board members in connection with the management of the Institute are disclosed below. Ms Leonie Burrows Board Chair Mr Rod Markwell Ministerial Nominee Ms Kay Martin Ministerial Nominee Ms Amanda Phillips Ministerial Nominee Ms Lydia Senior Ministerial Nominee Mr Justin Lachal Ministerial Nominee (commenced 1 July 2016) Mr Terry Jennings Board Nominee (concluded 30 June 2016) Coopted Nominee (commenced 22 August 2016) Mr Greg Hutchison Coopted Nominee (commenced 22 August 2016) Mr Mark Liddle Coopted Nominee (commenced 22 August 2016) Mr Geoff Dea Board Nominee (concluded 28 March 2016), CEO Director (commenced 1 July 2016) Mr Ross Goonan Staff Elected Director (commenced 1 July 2016) Mr Owen Russell Ministerial Nominee (concluded 30 June 2016) Ms Trudie Chant Ministerial Nominee (concluded 30 June 2016)

2016 2015 '000s '000s Remuneration of Board members Remuneration received, or due and receivable from the Institute in connection with the management of the Institute. Includes termination payments and bonuses paid at end 165 133 of contracts.

92 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 21 Responsible persons and executive officers

2016 2015 No. No. Income range The number of board members whose total remuneration from the Institute was within the specified income bands are as follows: Less than $10,000 7 1 $10,000 - $19,999 5 8 $20,000 - $29,999 - 1 $30,000 - $39,999 1 - Total number of board members 13 10

Other transactions Other related transactions and loan requiring disclosure under the Directions of the Minister for Finance have been considered and there are no matters to report.

(iv) Executive officers

The following persons also had authority and responsibility for planning, directing and controlling the activities of Institute during the financial year: Mr Frank Piscioneri Mr Anthony Mills Ms Tracey Forbes

Remuneration of executive officers The number of executive officers, excluding the chief executive officer, and their total remuneration during the reporting period are shown in the first two columns in the table below in their relevant income bands. The base remuneration of executive officers is shown in the third and fourth columns. Base remuneration is exclusive of bonus payments, long service leave payments, redundancy payments and retirement benefits. The total annualised employee equivalent provides a measure of full time equivalent executive offices over the reporting period.

Total Remuneration Base Remuneration 2016 2015 2016 2015 No. No. No. No. Income range The number of executive officers whose total remuneration from the Institute exceeded $100,000, separately identifying base remuneration and total remuneration, disclosed within the income band of $10,000 in a table format: $130,000 - $139,999 - 1 - 1 $150,000 - $159,999 3 3 3 3 Total number of executive officers 3 4 3 4 Total annualised employee equivalent (AEE) 3 4 3 4 Total amount of remuneration ($'000) 451 602 374 568

Other transactions Other related transactions and loans requiring disclosure under the Directions of the Minister for Finance have been considered and there are no matters to report.

93 Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 22 Related parties

Key management personnel Related parties disclosures are set out in Note 21 (Responsible persons and executive officers). During the year, there have been arms length related party transactions as follows: Leonie Burrows and Associates (Responsible Person Leonie Burrows) $265 Mildura Workings Man's Club (Responsible Person John Harlock) $192 Markwells Auto (Responsible Person Rod Markwell) $97,441 Mildura Weekly (Responsible Person Rod Markwell) $6,738 Lower Murray Water Corporation (Responsible Person's Leonie Burrows and Owen Russell) $81,746

94 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 23 Controlled entities

The consolidated financial statements incorporate the assets, liabilities and results of the following controlled entities in accordance with the accounting policy described in Note 1.04: Equity holding Country of Class of Shares 2016 2015 incorporation 23 Controlled entities % %

TAFE Kids Incorporated Australia N/A 100% 100% TAFE Kids Incorporated provides community child care services. The 0 0 0% 0% Association is controlled by Sunraysia Insitute of TAFE.

95 Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 24 Remuneration of auditors

Consolidated Institute 2016 2015 2016 2015 24 Remuneration of auditors $'000 $'000 $'000 $'000 Remuneration of Victorian Auditor General's Office for: Audit of the financial statements 27 31 23 27 Total remuneration of Victoria Auditor General's Office 27 31 23 27 Remuneration of other auditors Remuneration for continuous auditors 22 87 22 87 Total remuneration of other auditors 22 87 22 87 Total Remuneration of auditors 49 118 45 114

96 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 25 Subsequent events

No matters or circumstances have arisen since the end of the reporting period which significantly affected or may significantly affect the operations of the Institute, the results of those operations, or the state of affairs of the Institute in future financial years.

97 Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 26 Economic dependency Department of Education and Training The Sunraysia Institute of TAFE is dependent on the financial support of the Department of Education and Training for a significant volume of revenue to support General Profile Entitlements and Apprentice/Traineeship Entitlements.

Sunraysia Institute of TAFE is a body corporate established by the Education and Training reform Act 2006 . Under the Act and the VET Funding Contract, the Department of Education and Training provides payments to the Institute (Board). The funds are provided to assist the Institute to maintain assets and infrastructure and provide ancillary services in order to support delivery of training services.

Sunraysia Institute of TAFE is significantly dependent on the continued financial support of the State Government and in particular, the Department of Education and Training. The Department of Education and Training will regularly assess the going concern of Sunraysia Institute of TAFE and, if appropriate, will provide adequate cash flow support to allow the Institute to meet its current and future operational obligations as and when they fall due for 18 months from the date of signing the 2016 financial statements.

98 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Financial Statements for Sunraysia Institute of TAFE for the year ended 31 December 2016

Note 27 Institute details

Institute details The principal place of business is:

Sunraysia Institute of TAFE 453 Benetook Avenue , Mildura, Victoria 3500

With a campus also located at:

64 Sea Lake Swan Hill Road, Swan Hill, Victoria 3585 160 Bromley Road, Robinvale, Victoria 3549 46 Oke Street, Ouyen, Victoria 3490

99 2016 Financial Report The Audit Committee has reviewed and recommends the submission of the financial statements for the year ended 31 December 2016.

Amanda Phillips AUDIT COMMITTEE CHAIR 28/02/2017

100 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Item No. Source Summary of Reporting Requirement Page No. REPORT OF OPERATIONS CHARTER AND PURPOSE 1 FRD 22G Manner of establishment and the relevant Minister 2-3, 23, 92 2 FRD 22G Purpose, functions, powers and duties linked to a summary of activities, programs 2-3, and achievements 9-21, 23 3 FRD 22G Nature and range of services provided including communities served 2-3 MANAGEMENT AND STRUCTURE 4 FRD 22G Organisational structure and chart, including responsibilities 27 5 FRD 22G Names of Board members 23-24 FINANCIAL AND OTHER INFORMATION 6 FRD 03A Accounting for Dividends NA 7 FRD 07B Early adoption of authoritative accounting pronouncements 59 8 FRD 10A Disclosure Index 101-103 9 FRD 17B Long Service leave and annual leave for employees 59 10 FRD 20A Accounting for State motor vehicle lease arrangements prior to 1 Feb 2004 NA 11 FRD 22G Operational and budgetary objectives, performance against objectives and achievements 9-19 12 FRD 22G Occupational health and safety statement including performance indicators, performance against 36 those indicators. Reporting must be on the items listed at (a) to (e) in the FRD 13 FRD 22G Workforce data for current and previous reporting period including a statement on employment 33-35 and conduct principles and that employees have been correctly classified in the workforce data collections (see Attachment B for details of the Department’s required reporting approach to all workforce data contained in Annual Reports from 2016 onwards). 14 FRD 22G Summary of the financial results for the year including previous 4 year comparisons 19 15 FRD 22G Summary of significant changes in financial position 19 16 FRD 22G Key initiatives and projects, including significant changes in key initiatives and projects from 9-22 previous years and expectations for the future 17 FRD 22G Post-balance sheet date events likely to significantly affect subsequent reporting periods 19, 97 18 FRD 22G Summary of application and operation of the Freedom of Information Act 1982 28, 30 19 FRD 22G Discussion and analysis of operating results and financial results 18-19, 40-43 20 FRD 22G Significant factors affecting performance 4-7, 19 21 FRD 22G Where a TAFE has a workforce inclusion policy, a measurable target and report on the progress NA towards the target should be included 22 FRD 22G Schedule of any government advertising campaign in excess of $100,000 or greater NA (exclusive of GST) include list from (a) – (d) in the FRD 23 FRD 22G Statement of compliance with building and maintenance provisions of the Building Act 1993 31 24 FRD 22G Statement, where applicable, on the implementation and compliance with the National 30 Competition Policy 25 FRD 22G Summary of application and operation of the Protected Disclosure Act 2012 28, 31-32 26 FRD 22G and Summary of Environmental Performance including a report on office based environmental 28-30 FRD 24C impacts 101 Item No. Source Summary of Reporting Requirement Page No. 27 FRD 22G Consultants: 36 Report of Operations must include a statement disclosing each of the following 1. Total number of consultancies of $10,000 or more (excluding GST) 2. Location (eg website) of where details of these consultancies over $10,000 have been made publicly available 3. Total number of consultancies individually valued at less than $10,000 and the total expenditure for the reporting period AND for each consultancy more than $10,000, a schedule is to be published on the TAFE institute website listing: • Consultant engaged • Brief summary of project • Total project fees approved (excluding GST) • Expenditure for reporting period (excluding GST) • Any future expenditure committed to the consultant for the project

28 FRD 22G Statement, to the extent applicable, on the application and operation of the Carers Recognition 32 Act 2012 (Carers Act), and the actions that were taken during the year to comply with the Carers Act 29 FRD 22G List of other information available on request from the Accountable Officer, and which must be 32 retained by the Accountable Officer (refer to list at (a) – (l) in the FRD) 30 FRD 22G An entity shall disclose the following in the report of operations: 36 a) Total entity ICT Business As Usual (BAU) expenditure for the full 12 month reporting period; and b) Total entity ICT Non-Business As Usual expenditure for the full 12 month reporting period; and provide a breakdown for: (i) Operational expenditure (OPEX); and (ii) Capital expenditure (CAPEX) 31 FRD 25B Victorian Industry Participation Policy Disclosures 31 32 FRD 26A Accounting for VicFleet motor vehicle lease arrangements on or after 1 February 2004 NA 33 FRD 29A Workforce Data Disclosures on the public service employee workforce. 33-35, Note: TAFEs must report on a calendar year basis (ie not financial year basis). 92 34 SD 3.7.1 The Responsible Body must ensure that the Agency applies the Victorian Government Risk 33 Management Framework. 35 FRD 22G An entity’s report of operations shall contain general and financial information, including other 2-22, relevant information, outlining and explaining an entity’s operations and activities for the 40-43 reporting period. 36 SD 5.2.1(a) The Accountable Officer must implement and maintain a process to ensure the Agency’s Annual 1 Report is prepared in accordance with the FMA, these Directions, the Instructions, applicable Australian Accounting Standards and Financial Reporting Directions. 37 SD 5.2.3 The report of operations must be signed and dated by the Responsible Body or a member of the 1 Responsible Body. 38 CG 10 Major Commercial Activities 33 (clause 27) 39 CG 12 Controlled Entities 33, 95 (clause 33) FINANCIAL REPORT FINANCIAL STATEMENTS REQUIRED UNDER PART 7 OF THE FINANCIAL MANAGEMENT ACT 1994 40 SD 5.2.2(b) The financial statements have been prepared in accordance with applicable requirements in the 37, 45 FMA, the Directions, the Financial Reporting Directions and Australian Accounting Standards. OTHER REQUIREMENTS UNDER STANDING DIRECTION / FINANCIAL MANAGEMENT ACT 1994 (FMA) 41 SD 5.2.2(a) An Agency’s financial statements must include a signed and dated declaration by: 37, 45 and • the Accountable Officer; FMA s 49 • subject to Direction 5.2.2(c), the CFO; and • for Agencies with a statutory board or equivalent governing body established by or under statute, a member of the Responsible Body. 42 FRD 30C Rounding of amounts 59 43 SD 3.2.1.1(c) The Responsible Body must establish an Audit Committee to: 100 • review annual financial statements and make a recommendation to the Responsible Body as to whether to authorise the statements before they are released to Parliament by the Responsible Minister

102 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

Item No. Source Summary of Reporting Requirement Page No. OTHER REQUIREMENTS AS PER FINANCIAL REPORTING DIRECTIONS IN NOTES TO THE FINANCIAL STATEMENTS 44 FRD 11A Disclosure of ex-gratia payments NA 45 FRD 21B Disclosures of Responsible Persons, Executive Officer and Other Personnel (Contractors with 92-94 significant management responsibilities) in the Financial Report 46 FRD 102 Inventories 58, 68 47 FRD 103F Non-financial physical assets 58, 69-71 48 FRD 104 Foreign currency 53 49 FRD 105A Borrowing costs 54-55, 59 50 FRD 106 Impairment of assets 57 51 FRD 107A Investment properties NA 52 FRD 109 Intangible assets 58, 72 53 FRD 110 Cash flow statements 51 54 FRD 112D Defined benefit superannuation obligations 83 55 FRD 113A Investment in subsidiaries, jointly controlled entities and associates 95 56 FRD 114A Financial instruments – general government entities and public non-financial corporations 84-91 57 FRD 119A Transfers through contributed capital 59 58 FRD 120I Accounting and reporting pronouncements applicable to the reporting period 60-62 COMPLIANCE WITH OTHER LEGISLATION, SUBORDINATE INSTRUMENTS AND POLICIES 59 Legislation The TAFE institute Annual Report must contain a statement that it complies with all relevant legislation, and subordinate instruments, (and which should be listed in the Report) including, but not limited to, the following: • Education and Training Reform Act 2006 (ETRA) • TAFE institute constitution • Directions of the Minister for Training and Skills (or predecessors) • TAFE institute Commercial Guidelines • TAFE institute Strategic Planning Guidelines • Public Administration Act 2004 • Financial Management Act 1994 • Freedom of Information Act 1982 • Building Act 1983 • Protected Disclosure Act 2012 • Victorian Industry Participation Policy Act 2003 60 ETRA s3.2.8 Statement about compulsory non-academic fees, subscriptions and charges payable in 2016 31 61 Policy Statement that the TAFE institute complies with the Victorian Public Sector Travel Principles 32 62 Key See table on page 6 of the guidelines for required formatting. 40-43 Performance Institutes to report against: Indicators • KPIs set out in the annual Statement of Corporate Intent; and • Employment costs as a proportion of training revenue; • Training revenue per teaching FTE; • Operating margin percentage; • Training Revenue diversity. OVERSEAS OPERATIONS OF VICTORIAN TAFE INSTITUTES 63 PAEC and (June 2003 Special Review item 3.110) 17 VAGO • Financial and other information on initiatives taken or strategies relating to the institute’s overseas operations • Nature of strategic and operational risks for overseas operations • Strategies established to manage such risks of overseas operations • Performance measures and targets formulated for overseas operations • The extent to which expected outcomes for overseas operations have been achieved.

103 Key to abbreviations AEU Australian Education Union AMP Asset Management Plan BAU Business as usual CEO Chief Executive Officer CRM Customer relationship management EBIT Earnings before interest and tax EBITDA Earnings before interest, tax, depreciation and amortisation ELICOS English language intensive courses for overseas students FFS Fee for service FMA Financial Management Association FTE Full time equivalent ICT Information communications technology KPI Key performance indicator LPG Liquefied petroleum gas MDAS Mallee District Aboriginal Services MEA Multi Enterprise Agreement NCS National Centre for Sustainability PACCT Professional, Administrative, Clerical, Computing and Technical PAEC Public Accounts and Estimates Committee SCH Student Contact Hours SaJC Skills and Jobs Centre TAFE Technical and Further Education TSAF TAFE Structural Adjustment Fund VAGO Victorian Auditor-General’s Office VET Vocational Education and Training VIPP Victorian Industry Participation Policy VTG Victorian Training Guarantee

Requests for further information can be directed to: Sunraysia Institute of TAFE Office of the CEO PO Box 1904 Mildura, VIC 3502 Ph.: 03 5022 3707 [email protected]

This annual report is available online at www.sunitafe.edu.au

104 SUNRAYSIA INSTITUTE OF TAFE 2016 ANNUAL REPORT

105 www.sunitafe.edu.au